- PEPE whales dumped over 1 trillion tokens in 24 hours, and this massive selloff creates downward pressure on the price.
- The coin forms a bearish flag pattern that signals a potential 50% crash to $0.00000480.
- Technical indicators show weak buying interest, and the upward trend lacks the strength to continue.
Pepe Coin (PEPE) faces mounting pressure as technical indicators signal a potential major price correction. Despite broader market concerns, the meme coin currently trades at $0.0000102, showing a modest 2.7% increase over 24 hours.
The cryptocurrency has declined more than 11% over the past month, raising questions about its short-term trajectory. Trading volumes remain robust at $673 million, yet whale activity suggests institutional investors are positioning for further downside.
Massive Whale Selloff Triggers Market Concern
Large-scale investors have significantly reduced their PEPE holdings, creating selling pressure across the market. IntoTheBlock data reveals whales offloaded over 1.16 trillion tokens within 24 hours.
Whale wallet balances shifted dramatically from 647 billion tokens to negative 521 billion. This substantial reduction indicates major holders are liquidating positions rather than accumulating additional tokens.
The timing of these sales coincides with the formation of a bearish flag pattern on daily price charts. Technical analysts view this combination as a strong signal that downward momentum may accelerate.
Retail traders often interpret this as a warning sign when institutional investors reduce exposure simultaneously. The whale selling activity suggests these large investors anticipate further price declines.
Technical Analysis Points to Major Price Correction
Chart patterns indicate PEPE could experience a significant correction in the coming weeks. The bearish flag formation typically signals the continuation of a previous downtrend after a brief consolidation period.
The flag pole represents a 49% decline over one month, reaching a low of $0.00000830. If this pattern plays out according to historical precedent, PEPE could target $0.00000480.
The Average Directional Index (ADX) supports this bearish outlook by showing weakening upward momentum. This indicator suggests the recent recovery lacks the strength to sustain higher prices.
Additionally, the Chaikin Money Flow (CMF) indicator remains negative, reflecting limited buying interest at current price levels. Negative CMF readings typically indicate distribution phases where selling pressure exceeds buying demand.
The ascending channel that formed the flag structure may break lower if support levels fail to hold. Technical traders are monitoring the $0.00000830 level as a critical support zone.
The bearish scenario could intensify if whale selling continues and technical support levels break. However, a reversal in whale behavior toward accumulation could invalidate the negative outlook.
Other meme coins have shown stronger performance recently, potentially drawing investor attention away from PEPE. This rotation effect could further pressure the token’s price performance.
The cryptocurrency market remains volatile, and sudden shifts in sentiment can rapidly change price trajectories. Traders should monitor whale activity and technical indicators for early signs of trend changes.
Disclaimer
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