PEPE Whale Dumps 330 Billion Tokens, Crash Ahead?

PEPE Whale Dumps 330 Billion Tokens, Signaling Market Correction

Pepe (PEPE), the third-largest meme coin, has garnered significant attention due to recent whale dumps. On August 30, 2024, a PEPE whale transferred over 330 billion tokens (worth $2.53 million) to the Kraken exchange, incurring a loss of $3.13 million, as reported by Lookonchain.

Whale Activity and Market Sentiment

Despite the dump, the whale still holds 1 trillion PEPE tokens (worth $7.57 million). Notably, the whale had purchased 828.64 billion PEPE tokens ($6.18 million) on August 18, 2024.

This significant sell-off has triggered bearish market sentiment, indicating a potential correction ahead.

Price Prediction

Technical analysis suggests that PEPE is approaching a critical support level of $0.000007. The token is trading below its 200 Exponential Moving Average, indicating a downtrend. However, its Relative Strength Index is oversold, potentially signaling a price recovery soon.

Based on historical data, PEPE could potentially surge 22% to $0.00000938. Conversely, if it fails to maintain support and falls below $0.00000672, it could decline to $0.000006.

On-Chain Metrics

Coinglass's PEPE OI-weighted funding rate shows a dominance of short sellers, suggesting a potential liquidation of long positions. The OI-weighted funding rate currently stands at -0.0030%, pointing towards a bearish trend.

Current Trading Activity

As of the time of writing, PEPE trades near $0.0000076, experiencing a minor decline of 0.6% in the last 24 hours. Open interest has increased by 6% during this period, reflecting increased market interest despite the selling pressure.