Whale Moves and Bearish Risks Expose Fragile PEPE Market Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— Pepe coin price remained range-bound with little to no volatility after recovering from July 7’s 15% plunge to a low near $0.0000083. A recent move by a whale, transferring 9 trillion PEPE to Bybit, has exacerbated bearish sentiments.
Although the staking of 2 trillion PEPE at Sophon raised the market’s hopes, the overall sentiment remains bearish for PEPE prices.0
Whale Dumps and Bearish Charts Signal Caution for PEPE
The recent whale activity involving the transfer of 9 trillion PEPE to Bybit has sent shockwaves through the market. Whale Alert recorded this transaction, valued at $82.17 million. The whale wallet, identified as 0x88a14933, had previously accumulated the same amount of PEPE from Bybit, suggesting a strategic move to offload a significant portion of holdings.
Moreover, another whale address, 0x2da, staked 2 trillion PEPE into Sophon. The stake, worth $18.42 million, was acquired for just $2.33 million last year, reflecting an unrealized profit of $16.09 million. Although staking is usually bullish for a token, Pepe coin’s overall sentiment remains bearish.
PEPE Futures Open Interest. Source: Coinglass
The open interest and funding rate charts further support the bearish sentiment. The PEPE OI-Weighted Funding Rate chart shows negative funding rates in recent periods, indicating a bearish bias among traders.
The PEPE Futures Open Interest chart mirrors this sentiment, with open interest declining alongside the price, suggesting a decrease in speculative activity and confidence.
Wintermute, a market maker, compounded the bearish outlook against PEPE coin price by dumping 702 billion PEPE to Binance.
PEPE Coin Bearish Setup Adds Insult To Injury
Meanwhile, a bearish technical setup called the ‘descending triangle pattern‘ adds to the bearish cues against the memecoin. The token is currently testing the support trendline of the pattern, leaving bulls anxious of a breakout.
PEPE price formed a bearish setup with a 57% downside target. Source: Tradingview
Market analysts often consider the descending triangle a bearish continuation signal.
The configuration features a downward-sloping upper trendline, which gradually reduces the price action’s highs, and a flat lower trendline, which is a consistent support level the price finds difficult to break.
Moreover, the pattern suggests that selling pressure is intensifying, leading to successively weaker rallies. In this setup, the potential price target is typically gauged by the maximum height of the triangle at its widest point.
Hence, confirming the bearish setup might result in the PEPE price dropping over 57% to reach the projected price target near $0.0000039.
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