- The largest whale cohort of Pepecoin has been dumping the token.
- PEPE price dropped nearly 15% since Sept. 9.
- The memecoin has formed a bullish pattern.
NEW DELHI (CoinChapter.com) — The troubles plaguing meme token Pepecoin continue to grow after some of its founders “went rogue” and sold off most of the PEPE token supply in Aug.
On-chain data suggests that Pepecoin’s whale cohorts — traders holding many PEPE tokens — have started dumping their holdings.
With the wider crypto market in turmoil, as Bitcoin and other crypto tokens continue to crab, the increased selling pressure on PEPE will likely result in further losses for the meme token.
As the chart shows, the number of wallets holding 100 million – 1 billion PEPE tokens (blue wave) has declined, suggesting that whales might be considering the project a failure and jumping ship before it is too late.
The memecoin’s downtrend continues despite PEPE fans shilling the token’s prospects on social media platforms like X (formerly Twitter). Pepecoin’s official X handle shared a (slightly) deep fake video of Ethereum founder Vitalik Buterin shilling the many qualities of the PEPE token on a podcast.
The video was likely shared as a humourous post and not for fooling followers.
Furthermore, on-chain data provider Lookonchain shared that three crypto wallets sold 1.38 trillion PEPE tokens for 600 ETH (roughly $965,000) and spent the ETH to buy 487 billion Pondcoin (PNDC) tokens.
More investors are likely to sell their PEPE holdings as pressure mounts, especially as several users call the project a scam on social media following the developers’ sell-off incident.
PEPE Price Moving Inside Bullish Pattern
Meanwhile, the PEPE price has formed a bullish technical pattern called the ‘Falling Wedge.’
The technical pattern forms when the price fluctuates inside a pair of falling trendlines that converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside.
One key feature of the pattern is that volumes usually decline as the trendlines converge.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Thus, confirming the pattern could see the Pepecoin token price rally 288% to reach a theoretical price target of $0.000002668.
However, the bearish pressure against the token would likely force the PEPE price to invalidate the pattern.
Pepecoin Price Buckles Under Bearish Pressure
PEPE price’s ongoing downtrend has forced the token to lose all its gains since May 1. The meme token price dropped nearly 15% since Sept. 9 to form a daily low near $0.000000665 on Sept. 11.
PEPE price ended trading on Sept. 10 with a loss of 9.71%. The Pepecoin token price continued its bear run on Sept. 11, with prices dropping over 6% from the day’s high near $0.000000708 before bulls recovered some of the lost ground.
If the sell-off continues, the PEPE price might drop to the support near $0.000000618. Moreover, failure of the immediate support level could force Pepecoin price to test the support near $0.000000512 before recovering.
The RSI for PEPE remained oversold, with a score of 24.39 on the daily charts. Oversold RSI levels often precede a bullish price reversal for assets. Hence, traders consider the occurrence a bullish signal.
However, PEPE bulls would have to overcome massive bearish pressure against Pepecoin price to reach the immediate resistance near $0.000000773, which acted as a support level for the token between Aug. 25 and Sept. 10.
Flipping the immediate resistance might attract buyers, which could briefly propel the PEPE price to the resistance near $0.0000009.