PEPE could rise again if the horizontal support is maintained
Lookonchain data shows that a wallet address holding 1 billion PEPE tokens transferred $8.5 million worth of the meme coin to Kraken this week.
This type of transaction often indicates that large holders are selling. Exchanges are more liquid than DEXs for this volume.
This wallet address made approximately $12 million in late December by taking advantage of $PEPE 's drop on December 19. This investor bought back the token days later at a reduced price and eventually accumulated nearly 1.42 billion coins.
Based on its past behavior, the whale shifting so many tokens to Kraken, which will likely be sold, suggests a significantly larger drop for PEPE in the coming days.
PEPE could rise again if the horizontal support is maintained
The current crash has affected meme coins in general. Their total market value has dropped from $121 billion to $97.3 billion in 30 days.
All top 5 tokens including Dogecoin ($DOGE), Shiba Inu ($SHIB) and Bonk ($BONK) have fallen double digits over the past 30 days. The worst correction was in $PEPE.
Today’s 1.8% drop is the third consecutive day and the fifth in six trading sessions that PEPE has fallen. This decline has pushed this meme coin to $0.00001686, a key horizontal support.
Over the past month and a half, PEPE found support three times between $0.00001650 and $0.00001700. The value of this asset may increase in the short term if the support area remains in a descending triangle.
Descending triangles suggest that buyers were not willing to pay a high price for the item, but appeared after the price fell near a specific area. Specifically, the previous range.
If the price breaks out of the descending triangle and explodes above $0.00002200, $PEPE will shake off the last wave of negative momentum and rise again.
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