Pepe Coin Sees Bearish Sentiment As Whale Dumps Tokens
NOIDA (CoinChapter.com)— Pepe coin prices have been in a downtrend since July 1, highlighting the bearish pressure against the memecoin.
The meme crypto token, which led the March 2024 memecoin madness, seems to have fallen prey to profit booking after charting a new all-time high on May 28 this year. Now, the token has more bearish cues that could further sink PEPE coin prices.
Bearish Indicators and Whale Activity Signal Downturn for PEPE
The current analysis of PEPE futures reveals a bearish sentiment. Open Interest (OI) increased significantly from mid-April, peaking around late May and early June. However, a notable decline in OI since then indicates reduced trading activity and waning interest in PEPE futures.
The trend aligns with the Pepe coin price movement, highlighting a strong correlation between reduced trader positions and price depreciation.
Additionally, the OI-weighted funding rate fluctuates significantly, with periods of negative funding rates dominating.
A negative funding rate, where short positions pay long positions, reflects a prevailing bearish sentiment among traders. Recent data shows consistently negative or near-zero funding rates, underscoring the market’s expectation of further price decline.
Moreover, whale activity has further underscored the bearish outlook against PEPE. A major whale, ‘dimethyltryptamine.eth,‘ who previously turned a $45,000 investment into $26.7 million, recently sold 10 billion PEPE tokens worth $112,000.
The whale dump, completed after over 10 months of inactivity, equated to 32.73 ETH. The whale currently holds nearly 2 trillion PEPE tokens valued at $21.9 million. Market participants interpret the sell-off as meaning the whale wallet does not anticipate a strong upside for PEPE in the near future.
Moreover, the whale’s decision to liquidate a portion of their holdings during a downtrend emphasizes potential concerns over PEPE’s short-term performance. Retail traders often mimic whale wallet movements. Hence, the Pepe coin token dump could increase the bearish pressure against the memecoin.
As such, it seems that traders are pulling back, and the market sentiment is clearly negative, with expectations of continued downward price movement.
PEPE Price Testing Crucial Support
The descending channel support, combined with the 0.382 Fibonacci retracement level and the 200-day EMA (green wave) trendline, could be a key support level near $0.000008 for PEPE Coin prices.
A bullish rebound from this level could see PEPE test the 100-day EMA (blue wave) resistance near $0.0000101 and potentially rally to $0.00001216.
PEPE has been trading within a descending channel since late May, with prices consistently failing to break above the upper trendline resistance.
On the other hand, a breakout below the descending channel could intensify the bearish pressure against memecoin. The breakdown would likely attract bears to the market, forcing the PEPE coin price to the next support level of around $0.0000067.
The Relative Strength Index remains neutral, with a score of 31.22 on the daily charts. The RSI score indicates that the market could move in either direction depending on the prevailing sentiment and trading volume. However, the overall bearish indicators suggest a cautious approach for investors.
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