Pepe Coin’s price has continued its freefall since May this year, and this trend may accelerate as the whales begin to capitulate.
Summary
- The price of Pepe Coin continued its freefall this week.
- Whales and smart money investors have dumped their tokens.
- The supply of Pepe tokens on exchanges has continued to rise.
The Pepe (PEPE) token fell to a low of $0.000003745, its lowest level since October 10, and about 78% below its high in May this year.
Data from the chain shows that whales have begun to capitulate in recent days. Whales own 4.51 trillion Pepe tokens, down from this month’s high of 4.51 trillion. This selling could be a sign of capitulation as the coin continued to make a series of lower lows.
The selling could be a sign of growing fatigue ahead of the Bank of Japan’s closely watched interest rate decision. Economists expect the bank to raise interest rates by 0.25% to 0.75%, a move that could increase volatility in the cryptocurrency market.
More data shows that smart money investors have reduced their holdings from 211 billion tokens in November to 209 billion. This is important because these investors are known to make profitable trades most of the time.
These activities coincided with the slow recovery of exchange supply. There are now 265.81 trillion tokens, up from this month’s low of 203 billion. A rising exchange rate indicates an increase in sales by investors.
Meanwhile, the token’s open futures interest has fallen in recent months. The financing rate has remained in the neutral phase, while liquidity continues to decline.
Pepe Coin price technical analysis
The daily timeframe chart indicates that Pepe Coin price has been in a pronounced downtrend since its peak of $0.00001667 in May this year. It has remained below all moving averages and the parabolic SAR indicator.
The Awesome Oscillator and the Bull/Bear Power indicators have moved below the zero line, a sign that bears have gained the upper hand. It remains below all moving averages and the descending trend line.
Therefore, the most likely Pepe price forecast is bearish, with an initial target of $0.000002816, the October low. This price is approximately 30% below current levels.
The bearish outlook will become invalid if the coin moves above the dynamic resistance of the 50-day moving average.
#Pepe #Coins #price #sees #drop #whales #start #capitulate