Pepe Coin price has continued its freefall since May this year, and this trend may accelerate as whales begin to capitulate.
Summary
- Pepe Coin price continued its freefall this week.
- Whales and smart money investors have dumped their tokens.
- The supply of Pepe tokens in exchanges has continued rising.
Pepe (PEPE) token fell to a low of $0.000003745, its lowest level since Oct. 10, and about 78% below its highest point in May this year.
On-chain data shows that whales have started capitulating in the past few days. Whales hold 4.51 trillion Pepe tokens, down from this month’s high of 4.51 trillion. This selling could be a sign of capitulation, as the coin has continued making a series of lower lows.
The selling could be a sign of increasing weariness ahead of the closely-watched Bank of Japan interest rate decision. Economists expect the bank to raise interest rates by 0.25% to 0.75%, a move that may increase volatility in the cryptocurrency market.
More data shows that smart money investors have reduced their positions from 211 billion tokens in November to 209 billion. This is important because these investors are known to execute mostly profitable trades.
These activities have coincided with the slow rebound of exchange supply. There are now 265.81 trillion tokens, up from this month’s low of 203 billion. A rising exchange balance indicates increased selling by investors.
Meanwhile, the token’s futures open interest has dropped in the past few months. Its funding rate has remained in the neutral phase as its liquidity continues to fall.
Pepe Coin price technical analysis
The daily timeframe chart indicates that the Pepe Coin price has been in a pronounced downward trend since peaking at $0.00001667 in May this year. It has remained below all moving averages and the Parabolic SAR indicator.
The Awesome Oscillator and the Bull/Bear Power indicators have moved below the zero line, a sign that bears have prevailed. It remains below all moving averages and the descending trendline.
Therefore, the most likely Pepe price forecast is bearish, with the initial target being at $0.000002816, its lowest point in October. This price is about 30% below the current level.
The bearish outlook will be invalidated if the coin moves above the 50-day moving average’s dynamic resistance.