The popular memecoin Pepe (PEPE) has been experiencing a significant downturn, struggling within a descending channel that saw its price plummet following a recent market crash. This bearish trend has been notably exacerbated by a wave of large-scale selling from prominent holders, signaling a growing lack of market confidence.
PEPE's Downward Spiral and Whale Exodus
PEPE's price has been under intense pressure, rejecting a key resistance level two weeks ago and subsequently dropping to $0.0000044 amidst a broader market correction. The memecoin continues its week-long downtrend, currently trading at approximately $0.0000045. This decline is heavily influenced by aggressive spot selling, evidenced by a negative Buy-Sell Delta. Adding to this downward momentum, a long-term whale, who had held 1.7 trillion PEPE tokens since October 2023 without selling, offloaded a massive 858 billion tokens worth $3.88 million. This was not an isolated incident, as Nansen data indicates Top Holders collectively offloaded 4.25 trillion tokens, pointing to widespread panic selling among large investors. This exodus of major holders during a downtrend invariably signals a profound lack of market confidence and fear of further losses, increasing market supply and straining prices.
Technical Indicators Point to Continued Pressure
The technical indicators for PEPE further underscore its precarious position. The memecoin's Stochastic RSI has registered a bearish crossover, plunging deep into oversold territory at 13.5. Similarly, PEPE is trading well below its short- and long-term Moving Averages (20, 50, 100, and 200 EMAs), all confirming a sustained and intense bearish momentum. These indicators collectively suggest that the downside pressure is likely to persist. If sellers, particularly large whales, continue to dominate the market, PEPE could see further declines, potentially reaching $0.0000043. For any chance of a bullish reversal, the memecoin would need a decisive daily close above $0.0000051, a level currently acting as immediate resistance.
