Key Insights:
- A whale deposited 1.6T PEPE tokens into Binance at a loss.
- Technical indicators signal further downside for PEPE prices.
- Declining open interest suggests traders are pulling back.
PEPE coin price is experiencing heightened selling pressure as whale deposits to exchanges continue to increase. This raises concerns about possible short-term price drops.
Recent large token transactions are occurring alongside weakening technical indicators and increased caution from traders.
Whale Deposits Signal Increased Selling Pressure on PEPE
On-chain data reports a prominent whale has recently transferred large amounts of $PEPE tokens onto the Binance exchange. The whale sent 609 billion $PEPE tokens worth $6.55 Million to Binance.
A whale moved 1.6 trillion PEPE worth $18.1 Million. The deposits led to a $3.26 Million loss, highlighting market volatility.
The whale still holds 600 billion PEPE, valued at $6.39 Million. The recent transfers suggest a plan to sell large amounts. PEPE coin price may react to this activity. Market watchers are closely tracking further movements.
Technical Indicators Confirm Bearish Momentum for PEPE Coin Price
PEPE token on the daily chart on Binance represents the current market conditions in bearish conditions. The token was priced at around $0.00001086 at press time, down by 5.65% in the past 24 hours.
PEPE coin price has dropped below the middle Bollinger Band. The 20-day moving average now stands at $0.00001229, signaling potential volatility.
The lower Bollinger Band, at around $0.00001024, is noticed by technical traders as immediate support. Bearish sentiment may persist, as prices have recently shifted downwards from the midline. I
If PEPE reaches this lower band, it may bounce in the short term. However, additional downside moves may occur after a break below.
The stochastic RSI indicators also turn downwards, indicating slower momentum in the market. The reading level is 42.51, meaning there is still potential for downsides.
MACD indicators are answering bearish, as the histogram bars are moving down, and a bearish crossover occurred recently. The RSI was at a 42.20 level below the neutral mark at 50, signaling a reduction in market momentum.
PEPE Holder Distribution Indicates Overhead Resistance
According to the distribution of PEPE holders, many investors bought the token at prices above its current price. These positions, represented by red clusters, indicate that these investors face unrealized losses.
These clusters signal selling pressure as traders eye their entry points. Many may choose to sell if the price rises, affecting market movement.
The green clusters, which indicate profitable holders who purchased at below-current prices, are small and fewer. Even though such investors now show unrealized gains, the numbers are relatively lower, implying a weaker support.
Large groups holding losses above current market prices create resistance zones. These areas can make it difficult for prices to rise in the short term.
If PEPE coin price recovery attempts occur, traders may see increased selling pressure from these loss-bearing investors. In turn, such holder distribution can limit price gains on the upside, which supports short-term bearish trends.
Declining Open Interest Reflects Market Caution
The open interest (OI) of PEPE perpetual contracts fell by 6.85% in the last 24 hours. It now stands at $75.9 Million, reflecting reduced market activity.
A decline in open interest (OI) suggests traders are closing positions. This often signals growing caution or profit-taking in the market. It also shows the traders’ reluctance to occupy an uncertain market.
According to the PEPE Coin price forecast, the coin is expected to decline by -24.69%. Current technical indicators show a Neutral sentiment, while the Fear & Greed Index indicates 61 (Greed). Over the past 30 days, PEPE recorded 15 out of 30 green days (50%) with 7.98% price volatility.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.