Whale selling intensifies, PEPE price faces 20% drop

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As the price of Bitcoin (BTC) fell back from breaking through $100,000 to the support range of $97,000 to $99,000, the frog-themed memecoin PEPE suffered a significant decline in the past 24 hours. PEPE's current fully diluted valuation is about $7.6 billion, with an average 24-hour trading volume of about $2 billion, and the price has fallen by more than 11%, now about $0.00001816.

Main reasons: whale shuffle and leverage liquidation

Whale selling: The recent price drop is mainly due to the selling activities of whale investors. A whale holding 1 trillion PEPE units (worth more than $18 million) has deposited more than 427 billion PEPE (worth about $8.45 million) on the Kraken exchange. The whale has made a profit of about $13.45 million.

Market liquidation: As market volatility intensifies, leveraged traders have encountered huge liquidation pressure. In the past 24 hours, more than $5.6 million of Pepe contracts have been liquidated, of which more than $4.9 million are long positions.

Seller-dominated: On-chain data analysis shows that in the past 24 hours, Pepe's transactions have been mainly dominated by sellers, especially on DeFi protocols, where sell orders account for most of the volume.

Medium-term outlook: 20% decline is possible

Technical signals: Pepe prices have fallen below the 50-day moving average (MA) and entered a downward phase. Analysts predict that PEPE may face a further decline of 10-20% in the next few days.

Relative Strength Index (RSI): PEPE's RSI has fallen below 50%, indicating that seller power has prevailed.

Nevertheless, Pepe is still within the macro bull weekly chart range, and the market expects that Donald Trump's presidential inauguration will drive the crypto market into a new bullish cycle, which may provide momentum for PEPE prices to rebound and set new highs (ATH).

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