Date: Mon, Jan 27, 2025, 07:42 AM GMT
The cryptocurrency market faced a sharp decline today, with Bitcoin (BTC) falling by over 5%, trading below $100K. The global downturn in indices was likely triggered by the launch of China’s Deep Seek AI Model, which reportedly runs on reduced-capability chips, raising concerns over U.S. tech dominance.
Amid this market turbulence, Pepe (PEPE) has also suffered a significant double-digit decline, dropping over 17%.
Whale Offloading Intensifies Pressure
Recent data from Lookonchain highlights massive whale activity contributing to PEPE’s price drop. Several large investors have liquidated their holdings:
- Wallet 0xfBfC…07Be deposited 430B PEPE ($6.39M) to Binance 9 hours ago.
- Wallet marketparticipant.eth deposited 325.5B PEPE ($4.9M) to Binance 24 hours ago.
- Wallet 0xb1a2…6731 sold 200.88B PEPE for 2.85M USDC over the past 48 hours.
- Wallet 0xC7ac…BE36 deposited 140.83B PEPE ($1.98M) to Binance 2 hours ago.
The ongoing whale sell-off has fueled selling pressure, further exacerbating PEPE’s decline.
Will PEPE Bounce Back?
On the 4-hour chart, PEPE is trading within a falling wedge pattern. The recent rejection from the upper resistance at $0.00002084, coupled with the breakdown of the 50-day Simple Moving Average (SMA), has placed the token in a precarious position near its key support zone of $0.00001170. Currently, it is trading at $0.00001245.
At this moment, PEPE is holding above the 200-day SMA and this critical support level. If the 200-SMA sustains, PEPE could see a potential bounce-back, possibly aiming to retest the upper resistance of the falling wedge. However, if this zone fails to hold, PEPE may slip further toward the wedge’s lower boundary, presenting a downside risk.
MACD Signals and Momentum
The Moving Average Convergence Divergence (MACD) indicator suggests bearish momentum, with the MACD line below the signal line and histogram bars in negative territory. However, any upward shift in the MACD could signal a reversal and encourage bullish sentiment among traders.
Conclusion
While PEPE is under considerable pressure due to whale offloading and the broader market downturn, its ability to hold the $0.00001170 support level will be crucial in determining its short-term trajectory. A break below this level could spell further declines, while a rebound could see PEPE targeting its wedge resistance once again.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.