Whales Pulling Out: Is Pepe Price Headed for a Deeper Crash?

• Pepe Whales holdings have dropped by 1.71% in the past month, causing a 20% drop in price.
• Active addresses have dropped to a three-month low, indicating decreased user engagement.

While Bitcoin was headed to conquer $64K in September, the Pepe (PEPE) struggled near the lows. Amid improving market sentiments, the meme coin failed to grab investor attention.

When writing, the PEPE price was trading close at $0.000008322, recording a gain of 6.06% intraday. The crypto was consolidating for the last couple of months, looking for a firm footing near the lows.

Earlier in August, the crypto attempted a recovery after a consolidation. However, Pepe crypto whales dumped significant supply, and the price crashed by over 20%. It fell back into the consolidation zone. Also, the meme coin noted a dip in trading activity in recent sessions.

Pepe Whales Exit Market: What’s Next?

PEPE crypto has emerged as one of the top underperforming coins in the last couple of months. At the top of it, the top holders’ (aka whales) exit from the market has concerned investors.

Over the last 1 month, Pepe Whale holdings have dropped from 46.76% in August to 45.05%. The whales have sold nearly 1.71% of the total supply of $56.43 Million, causing a price drop of over 20%.

Top addresses, or whales, are the players with large investment amounts and more resources. Hence, they tend to be on the right side of the trend most of the time. The selloff by whales dragged the PEPE price back to the struggling zone.

Moreover, as per Santiment, an on-chain data provider, the 24-hour and 7-day active addresses have dropped to a three-month low. The reduced active addresses indicated low user engagement and low liquidity. Lower liquidity can make it tough for traders and investors to open trades at their desired PEPE price.

Can Pepe Break Out of Consolidation or Continue to Struggle?

The first half of this year has been very fruitful for the memecoin investors. Most of the meme coins surged over 50% to 100%, with Pepe Crypto becoming one of the top leaders. However, the second half of this year has been tough for them.

The PEPE price has crashed nearly 55% from its annual high. The annual high was attained in May at $0.0000172. Also, the whales’ exit in the last few months worsened the price fall. As a result, the struggle will extend to the upcoming sessions.

Pepe has stepped below all the key exponential moving averages in the daily chart. This may now act as dynamic resistance levels. Currently, the price exhibited a consolidation, indicating a sideways trend in the short term.

A breakdown below the consolidation may validate the presence of sellers and a worse scenario ahead. On the contrary, a breakout on the higher side may bring back hopes of recovery to the investors. Short-term traders and investors may have to look out for a breakout or breakdown scenario.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.