On-chain metrics show that exchanges have witnessed $6.8 million worth of PEPE inflows.

If PEPE stays above $0.000018, it could surge by 40% to reach the next resistance at $0.000026.

Pepe [PEPE], the popular and third largest cryptocurrency meme coin, saw its price drop significantly by 20% after the Federal Reserve Chairman took an anti-cryptocurrency stance. However, the Chairman’s statement not only caused the PEPE price to drop, but also triggered a massive sell-off in the entire cryptocurrency market.

Whales Sell $2.7 Million of PEPE at a Loss

During this period, one whale appeared to have dumped 150 billion PEPE worth $2.72 million on Binance, the world’s largest cryptocurrency exchange, for a loss of $219,000, according to data from Lookonchain.

This massive sell-off occurred when the market began to experience a decline in prices.

In a post on the social media platform, Lookonchain noted that the whale withdrew the meme coin on November 28, along with 60 billion Shiba Inu (SHIB) meme coins.

In addition to these large amounts of money, long-term holders also appear to be dumping their holdings on exchanges, according to on-chain analytics firm Coinglass.

PEPE spot inflow and outflow data showed that the exchange has witnessed a large inflow of PEPE worth $6.8 million.

This large inflow indicates a transfer of assets from wallets to exchanges, which is a bearish sign for token holders as it could mean falling prices and increased selling pressure.

PEPE technical analysis and key levels

Despite the heavy selling by whales and long-term holders, PEPE has managed to stay above the critical support level of $0.000018.

According to expert technical analysis, PEPE prices have begun to rebound after finding support at this level.

Based on the recent price action, if PEPE stays above $0.000018, there are high chances of a 40% surge in the future to reach the next resistance at $0.000026.

On the positive side, PEPE’s relative strength index (RSI) is currently trading near the oversold territory, suggesting that prices are poised for a rebound.

When combining these on-chain metrics with technical analysis, the sell-off appears to reflect fear among whales and long-term holders.

At press time, PEPE is trading near $0.0000191, with prices down more than 12% over the past 24 hours. During the same period, its trading volume surged 63%, indicating increased participation from traders and investors during the market sell-off.

PEPE price outlook is positive

Pepe’s price hit an all-time high (ATH) of $0.000028 on December 9 and experienced a 26.6% correction over the next nine days. As of Thursday, it retested the 50% price retracement level of the November 4 low of $0.000007 to ATH $0.000028 to reach $0.000018. This level roughly coincides with the daily support at $0.000017, making it a key reversal zone.

Like DOGE, OTC investors can accumulate the frog-themed memecoin at levels around $0.000018.

If PEPE rebounds from the $0.000018 level, it could extend its 28% rally and retest Monday’s high of $0.000024.

However, the RSI on the daily chart has fallen below the neutral level of 50, indicating strong bearish momentum. If the bulls do make a comeback, the RSI must sustain above the neutral level. Such a development will add fuel to the recovery rally.

Conversely, if PEPE fails to find support near $0.000018 and closes below $0.000017, it could extend its 6.8% decline and retest its weekly support at $0.000016.