Pepe Coin May Fall 30% as Whales Begin Capitulating

Since May, Pepe Coin’s price has struggled, with signs suggesting the decline could continue. Whales are selling, which may contribute to further losses. The token recently fell to $0.000003745, its lowest since October 10, down almost 78% from its May high. It has climbed slightly to $0.000003901, but the market is still uncertain.

The Impact of Whale Activity

Pepe Coin whales, who currently control about 4.51 trillion tokens, have started selling portions of their holdings. This drop from the month’s high could be a capitulation stage, when holders sell to avoid bigger losses. These stages often follow long downtrends and can lead to short-term rebounds, but they also show the market is tired.

Smart investors, known for generally profitable trades, have also cut back slightly. Their holdings declined from 211 billion tokens in November to 209 billion. This small drop is important because it shows caution among investors who usually think long-term.

At the same time, Pepe tokens on exchanges have risen from 203 billion to 265.81 trillion. More tokens on exchanges usually mean more selling and higher market swings. If sentiment stays negative, this could push prices lower.

Market Momentum and Price Action

Since peaking at $0.00001667 in May, Pepe Coin has traded below major moving averages. The daily chart shows a persistent downtrend, supported by the Parabolic SAR and Awesome Oscillator indicating ongoing selling. Bull/Bear Power remains under zero, reflecting control by sellers.

Open interest in futures is falling, and liquidity is weakening. Funding rates are neutral, showing caution without panic. If the price drops below the October low of $0.000002816, it could fall another 30%. Moving above the 50-day moving average would challenge the downtrend and suggest a possible shift in sentiment.

Key Factors to Monitor

It is important for traders and holders to track exchange balances, whale activity, and major technical resistance points. A rise in tokens being sent to exchanges can suggest that holders plan to sell, potentially driving prices lower.

Macroeconomic events are equally important. The Bank of Japan’s interest rate decision, with a possible rise of 0.25% to 0.75%, could affect global markets, including crypto, adding uncertainty for Pepe Coin investors.

Overall, technical weakness, rising exchange supply, and selling by whales suggest caution. Short-term rebounds may happen, but the market could test new lows before stabilizing.

What’s Next for Pepe Coin?

Pepe Coin may stay under pressure as large holders and skilled investors trim their positions. Rising exchange balances and weak technical signals suggest the token could fall to $0.000002816 before seeing a rebound.

Interest rate decisions and other market factors could affect its moves. Investors should follow on-chain metrics and key resistance levels to gauge potential price action.