Pepe (PEPE) has recently experienced a significant market downturn, with its price plunging back to March 2024 levels amidst a broader crypto market crash. This sharp decline has placed the popular memecoin under intense scrutiny, as investors and analysts keenly observe trading patterns, particularly from major holders, to gauge its immediate future trajectory. The current sentiment appears largely bearish, driven by key indicators reflecting increased selling pressure across the board.
Dominant Selling Pressure from Whales and Retailers
Recent data paints a clear picture of strong selling interest, especially from large-scale investors, or "whales." Between October 10th and 11th, Pepe whales offloaded a staggering 9.04 trillion tokens while acquiring only 6.62 trillion, resulting in a net negative balance change of $2.42 million. This significant imbalance, where selling outweighs buying, is a traditional bearish signal, suggesting a decline in overall market confidence. Compounding this, retail traders have also joined the selling spree to mitigate potential losses. Over a 24-hour period, sell volume surpassed buy volume by 350 billion tokens, indicating aggressive spot selling. Furthermore, a surge in positive Spot Netflow to $10.42 million suggests investors are actively depositing tokens onto exchanges, often a precursor to further selling pressure and potential price drops.
The Critical Juncture: Rebound or Further Decline?
The memecoin now finds itself at a critical juncture, with its Relative Strength Index (RSI) plummeting to 25, an oversold territory, before slightly recovering to 31. This volatility underscores an ongoing battle between bulls and bears for market control. Should buying activity intensify, particularly from whales, pushing the RSI decisively above 31, Pepe could potentially stage a rebound, aiming to reclaim the $0.000009 mark and even target $0.0000106. However, if the prevailing selling pressure continues to dominate, the outlook darkens, with the memecoin likely to seek support at a lower floor of $0.00000614, indicating a continued downward trend.
