- Whale sell-off triggers steep PEPE drop amid wider crypto market weakness. Â
- Persistent capital outflows reflect declining trader confidence in PEPE. Â
- MACD and RSI indicators confirm strong bearish momentum for PEPE price.
The meme coin PEPE ($PEPE) has come under intense selling pressure after a major early investor offloaded over a trillion tokens, leading to market concerns. Blockchain analytics platform Lookonchain reported that on March 29, 2024, a crypto whale sold 150 billion PEPE tokens on Binance, worth approximately $1.14 million.
The same investor has now liquidated a total of 1.02 trillion tokens, resulting in $6.66 million in sales. With an initial investment of just $2,184 for 1.5 trillion tokens, the investor has made a profit of $10.3 million, marking a return of 4,718x.
PEPE’s negative market trend is strengthened by crypto market weakness as the liquidation process occurs. Over the past 24 hours PEPE value decreased by 4.59% bringing its price down to $0.00006976. The downward market pressure continues even though daily trading volume has increased by 3.90% to $421.28 million.
PEPE’s market capitalization declined by 4.57% to $2.93 billion, now matching its fully diluted valuation. The token’s supply patterns remain stable, with 420.68 trillion tokens circulating out of a maximum supply of 420.69 trillion.
Throughout the intraday session the price of PEPE spiked to $0.00007296 and then declined steadily. The cryptocurrency price exhibited short-term upward movements early before establishing a descending pattern as traders lost money heavily in the final trading hours.
Netflow Data Highlights Persistent Capital Outflows
The Coinglass data shows PEPE endured similar capital withdrawal patterns throughout the recent months which indicates sustained capital departure from the asset. Negative netflows across the token started from mid-January which indicates ongoing capital withdrawals.
PEPE received its biggest monetary influx of $150 million which occurred in the middle of November alongside an increase in value. Price gains from the surge persisted through capital outflows which followed the rally’s conclusion resulting in extended price depreciation. Since early 2024 the red bars within the NetFlow chart displayed a diminishing trader confidence and redirected funds toward different investment options.
Technical Indicators Confirm Bearish Setup
The 4-hour PEPE/USDT chart technical analysis shows sustained negative price action. The MACD line shows a position of -0.000000028 below the signal line at -0.000000020 as the histogram maintains a negative position that indicates ongoing selling activity.
The Relative Strength Index (RSI) stands at 24.55 and is situated in the oversold area. The current market value of PEPE suggests an undervalued position despite no foreseeable market turnarounds.
FAQs:
Why is PEPE price dropping?Â
PEPE is facing selling pressure due to a whale liquidating over 1 trillion tokens. Broader market weakness has added to the decline.
What does the RSI of 24.55 indicate for PEPE?
An RSI of 24.55 places PEPE in oversold territory, suggesting it’s undervalued. However, no reversal signal has been confirmed.
Are traders still interested in PEPE despite the drop?
Yes, trading volume rose by 3.90% to $421.28 million, indicating continued activity. Liquidity remains strong despite the price fall.
