Pepe Coin Price Analysis: Whales Dumps 366B PEPE - Is This a Signal For More Correction?

In a notable event within the crypto sector, a Pepe Coin holder transferred significant amount of tokens to the trading platform Binance. According to data from Spotonchain the transaction involved 366 million PEPE valued at approximately $5.31 million. This movement indicates that the whale cashed in on the recent price surge of Pepe Coin yielding an estimated profit of $4.84 Million which translated to a gain of 985%.

At the time of writing PEPE is trading at $0.0000145 which is an increase of 1.56% in the last 24 hours. Its trading volume is currenty at $1.4 billion while its market cap at $6.1 billion.

The same deposit address was also previously utilized by two other savvy traders who successfully capitalized on PEPE market movements. Another transaction was noted by SpotOnChain where an additional 660.71 billion PEPE worth around $9.01 million was deposited to Binance. 

Significant withdrawals were also executed from both MEXC and Binance by the trader realizing profits of $4.57 million which represent 49.35% of the transaction value. These movements by whale accounts have raised concerns about more potential price declines for PEPe particularly as a high volume of sell orders was observed.

But despite these market activities leading to a price dip, the sentiment in the broader crypto market remains optimistic. Can PEPE see recovery signs soon? Let’s get some insights from the technicals.

In like a week now, PEPE market behavior has been mainly bearish particularly after reaching the $0.00001725 all time high on May 27th. Since then the price has retracted touching a ascending trendline that has been active since April 11th. This trendline is crucial because it has indicated potential bounce back points for the price previously.

The immediate target for PEPE remains at the recent all time high, with a breakout potential but only if the price faces rejection at this ascending trendline supporrt. There is also a possibility of more drop if the price breaks below the ascending trendline potentially filling a Fair Value Gap and moving towards another ascending trendline below the current one.

On PEPE technical indicators, they show more bearish momentum on its short term price movements. The Relative Strength Index is currently at 59 which shows bearish momentum as it has decreased from previously overbought conditions in late May. This suggests that there might be room for further bearish activity which could continue the price correction.

The Moving Average Convergence Divergence indicator (MACD)  has also undergone a bearish crossover recently with the MACD line dropping below the signal line. This is more of a bearish signal meaning that PEPE might experience further downtrend in the coming days.

Overall Pepe coin remains one of the most volatile crypto assets in the market that is categorized as a high yield speculative asset. This beginning of June seems to be a crucial period for PEPE as it tries to find a solid price support level.