PEPE Well Books $30 Million Profit, Price Crash Ahead?
Frog-themed Pepe (PEPE), the third largest meme coin, looks set for a price crash following massive gains by whales in recent days. According to crypto intelligence firm Sentiment, PEPE Wells and its traders have made huge profits of more than $30 million in the past six days.
PEPE's Bearish On-Chain Metrics
In cryptocurrency or any market, profit booking is considered a carry signal and can lead to a decline in the value of an asset. Apart from profit-taking, another reason for the upcoming price crash is lack of interest from traders and investors. According to the data, the value of whale transactions of $100,000 or more fell by 70 percent, falling from 129 transactions to 36 transactions in the past six days.
Combining this information, investors and whales are losing interest in the frog-themed meme-coin, which could lead to a price drop in the coming days.
Current price momentum
At press time, PEPE is trading near $0.0000071 and has experienced a price drop of over 6% in the last 24 hours. At the same time, the transaction volume has increased by 65 percent, which shows that the participation of traders is high.
PEPE technical analysis and upcoming levels
According to expert technical analysis, PEPE looks bullish when it trades below the 200 moving average (EMA) on a daily time frame. The 200 EMA is a technical indicator used by traders and investors to determine whether an asset is in an uptrend or downtrend.
On the other hand, PEPE has formed a bearish head and shoulders price action pattern on the daily time frame, indicating the possibility of bearish price action in the coming days. If PEPE closes a daily candle below the $0.00000644 level, there is a high probability of a 20% drop to the $0.0000051 level in the coming days.
However, this bearish thesis will only hold if PEPE closes the daily candle below the $0.00000644 level, otherwise it may fail.
