Whale sell-off and Bitcoin decline lead to a 11% plunge in Pepe's price: What’s next?

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The decline of Bitcoin triggers turmoil in the cryptocurrency market, with Pepe coin suffering major losses.

Recently, Bitcoin (BTC) fell below the key support range of $97,000 to $99,000, impacting the cryptocurrency market significantly. Among them, the frog-themed memecoin Pepe (PEPE) faced the most severe losses, dropping over 11% within 24 hours.

Reasons for the PEPE price crash

Pepe's decline is closely related to whale activity. A major investor holding a large amount of PEPE tokens deposited a significant number of tokens into the Kraken exchange over the past two days, leading to increased market sell pressure and whales profiting greatly from the situation.

At the same time, market volatility for Pepe has intensified, with liquidation amounts exceeding $5.6 million, resulting in heavy losses for long traders. Additionally, most memecoins experienced double-digit percentage losses during the same period, highlighting the instability in this sector of the cryptocurrency market.

On-chain data shows pessimism

The selling trend for Pepe is strong, with sellers dominating transactions on decentralized finance (DeFi) platforms, further putting pressure on Pepe's price.

Technical analysis: Future outlook

Pepe's price has fallen below the 50-day moving average, indicating potential further declines. Analysts predict that memecoins may drop 10-20% in the medium term before attempting a rebound. Although Pepe remains in a long-term bullish trend on the weekly chart, the daily relative strength index (RSI) has fallen below 50%, indicating that sellers currently hold the upper hand.

Market remains optimistic

Despite facing setbacks, the cryptocurrency market remains optimistic. Many believe that the inauguration of the elected U.S. president could become a catalyst for the next bullish phase, potentially reversing the bearish trend for Pepe and other cryptocurrencies.

Investment advice

The PEPE coin currently faces short-term volatility but may rebound. However, it’s essential to fully consider the risks before investing, as it may decline further before reaching new highs. While PEPE shows signs of recovery potential, investors may consider waiting for signs of stability after the current price drop before investing to achieve better long-term prospects. In the coming days, we will closely monitor Pepe's performance to see if it can regain its former glory.

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