Key Takeaways:
- Pepe coin whale dumped their stash, risking copycat reactions from other traders.
- Smaller retail investors follow the whales for cues.
- Technical analysis sees a 40% drop next week.
YEREVAN (CoinChapter.com) – Meme coin enthusiast SmartMoney, who made millions on Pepe coin, has sold his stash of 1.3 trillion PEPE for over 1,160 ETH, worth approximately $2.1 million.
The Lookonchain platform reported the news several hours later, predicting the dump could be instrumental in determining PEPE’s upcoming fluctuations. On May 13, the platform also noted the address’ large bet on the meme coin when SmartMoney bought the equivalent of his latest sale.
The meme coin sector can be extremely volatile and unpredictable. Thus, many retail investors not versed in meme coin trading follow more successful traders for cues. When SmartMoney bought the initial PEPE stash, many were excited to jump on the bandwagon, trusting the trader’s judgment.
Conversely, when a successful meme coin trader dumps their holdings, their followers could copy the move, creating a selloff wave and lowering the asset price.
PEPE trades nearly 70% below the peak, threatening another 40% slash.
According to the chart below, PEPE changed hands at $0.000001587 in the European session on May 22. However, the meme coin traded nearly 70% below its all-time high of $0.000004836 on May 5.
As of publication, the meme coin price retested a crucial support line at $0.000001505. However, the declining trading volumes forecasted a possible dip below the said support.
If the selling pressure rises, the PEPE coin price might drop to its support level near $0.0000008911. Thus, breaching the immediate support level at $0.000001505 could force the meme token price to drop over 40% in the current week.
Moreover, overall the token’s trading has declined after the May 5 peak. According to dune.com, the balance between Pepe’s “buy” and “sell” trades has not shifted dramatically.
However, the hourly trading volume in early May counted approximately $20-30 million PEPE, while the same metric stood at $120,000-130,000 on May 22.
Also read: APE Price Analysis: ApeCoin Eyes 8% Dip This Week Despite New Exchange Listing.
