The crypto market has been in a bearish trend over the past week, and Pepe, a popular memecoin, has not been spared. The token’s price dropped significantly from $0.00002567 to $0.000018, driven by a wave of panic selling among major investors. This created a strong selling pressure across the market.
Whale Activity Sparks Panic in the Memecoin Market
Pepe whales have been aggressively selling in recent days. According to data from Spotonchain, a single whale deposited 254.65 billion Pepe tokens into Binance within 24 hours. Such large deposits often signal an intent to sell, increasing market pressure.
These significant sales tend to trigger a chain reaction that drives prices lower. In a project like Pepe, where whales hold substantial portions of the supply, their selling creates panic among smaller investors, leading to further selling and exacerbating the price decline.
Impact on Price Charts
The whales’ activities have left a clear mark on Pepe’s price charts, intensifying the downward trend. The token experienced a 7.80% daily decline, trading at $0.00001863. Market sentiment for Pepe has shifted from bullish to bearish, according to recent analysis.
For instance, the long/short ratio for Pepe indicates that short positions now dominate the market, with shorts making up 53% of trades. This suggests that many traders expect prices to fall further, underscoring the growing negativity in market sentiment.
Investor Behavior and Technical Indicators
Pepe’s MVRV ratio, a metric that reflects the profitability of holders, dropped from 39 to 35 in the past week. This decline indicates waning confidence among long-term investors, many of whom have opted to sell. Additionally, total liquidations of long positions reached $4.97 million, further contributing to the market pressure.
The MACD (Moving Average Convergence Divergence) indicator also confirms a strengthening bearish trend. This technical signal highlights that sellers are firmly in control, pointing to a sustained negative trajectory in market sentiment.
The Future of Pepe and Investor Outlook
Current market conditions suggest that Pepe could see further declines. If the bearish trend continues, the token might find support at $0.00001576. However, growing selling pressure and negative sentiment could pose additional challenges for Pepe in the coming days.
As highlighted by The Bit Journal, investors should closely monitor price movements and adjust their strategies accordingly to navigate this volatile environment.
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