PEPE token price experienced a sharp over 9% price decline in the last 24 hours, triggered by increased trading activity and a substantial whale transaction.
A transfer of 427 billion PEPE tokens, valued at $8.5 million, was made to the Kraken exchange, intensifying selling pressure. The whale responsible still holds 1 trillion PEPE tokens, currently valued at $18.4 million, with a reported profit of $2 million from previous trades.
Whale Transaction Sparks Market Volatility
The increased whale activity in the market led to increased volatility of the PEPE’s market. Whale moved 427 billion tokens to Kraken in the last 30 hours, this amounted to $8.5 million.
This large scale transfer was also coupled with more liquidations, which contributed more pressure to the price of PEPE in the trading session.
This is even after the whale has sold a huge amount of PEPE tokens, holding 1 trillion PEPE tokens, a clear indication of the market power. This whale has been previously earning from PEPE transactions, with the previous profit recorded at $11.7M.
These movements tend to reinforce the market sentiment leading to quick price changes and increased volume of transactions.
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Bearish Double Top Formation Confirms Downtrend
On the PEPE/USDT chart, there is a Double Top pattern that is a bearish reversal signal. The presence of two peaks at around $0.00001950 shows that there is much selling pressure at the resistance level. This pattern suggested a possible bearish break through the neckline support at $0.00001855 once PEPE was through.
After the breakdown, the token continued the downward trend and is currently trading close to $0.00001849. The trend is consistent with the confirmation of the bearish Double Top pattern. Such technical patterns, accompanied by whale selling activity, have led to further decline of the PEPE cryptocurrency.
Indicators Highlight Market Weakness
Further evidence of bearish sentiments in the market is presented by key indicators. The 50-day and 200-day SMAs are also bearish, adding credence to further decline of the price.
The price of the memecoin is still trading below both the moving averages to cement the bearish trend.
The Relative Strength Index (RSI) is at 27.34, which is an indication of an oversold region. This may suggest a near term rally may be possible but overall the trend remains down unless aggressive buying pressure appears.
PEPE Token Bullish and Bearish Outlook
Looking at the market situation of PEPE it can be seen that there are two different possibilities that can occur. On the bull side, the oversold RSI can be seen as a sign of a short term bounce if buyers jump in at $0.00001800.
A bounce back may have PEPE challenging the $0.00001855 resistance level and further rise could be possible if trading volume and market sentiment improves.
But the bearish outlook will persist if PEPE price does not trade back above $0.00001855. A drop below $0.00001800 may open the way to further losses, $0.00001750 being the next significant support level. This could worsen the bearish trend in this situation as selling pressure will be on the high side.
