PEPE Price Dips Again: Could a 20% Drop Be Coming Soon?

• Pepe (PEPE) drops 14% on Monday, following a 21.80% fall last week, leaving traders concerned about its future outlook.
• The market sentiment remains bearish with the long-to-short ratio under 1, signaling more traders betting on further declines.
• Whale activity increases selling pressure on PEPE, with large transfers totaling millions of dollars in recent days, fueling market pessimism.

The price of Pepe (PEPE) also remains low, standing at $0.0000129 on Monday. This now indicates a 14% drop in the day, after a 21.80% plunge in the previous week. The recent movement of meme coin has been of concern to the traders and analysts in the market.

The sentiment in the market is still bearish and the long-to-short ratio for token has now dropped below one. This means that more traders are bearing shorts in the coin hoping for the value to drop even more. The momentum indicators also paint a gloomy picture of the future and there are calculations which show that the index may lose an additional 20% in the coming days.

Source: Coinglass

PEPE Faces Whale Pressure

Lookonchain showed that large investors, often referred to as whales, are selling their PEPE tokens. Interestingly, the wallet 0xfBfC…07Be sent 430 billion tokens to Binance, which is equivalent to $6.39 million. Another whale, marketparticipant.eth staked 325.5 billion coins ($4.9 million), while 0xb1a2…6731 traded 200.88 billion PEPE for 2.85 million USDC in the last 48 hours. Such sales apply pressure on the coin price, hence lowering the confidence of investors in the coin.

The price of PEPE has remained relatively slow and even with rejection on the 18th of January near a descending trendline. This line which connects higher highs since early December presented a central resistance level. 

Bearish Indicators for PEPE

After this rejection, token fell by more than 30% and closed below the 200-day Exponential Moving Average (EMA) at $0.000014 by Sunday.The coin is still trading below this level so there is a possibility that the bearish trend will remain intact.

If it fails to break past the $0.000013 mark on the daily chart, coin might be heading lower, experts say. Another 20% decline could be enough to bring the price back to $0.000010, last seen on November 8. The RSI is at 31 and declining and hence the market may continue to weaken before it becomes oversold.

Source: TradingView

However, the Moving Average Convergence Divergence (MACD) has also produced a bearish crossover. The red histogram bars below the neutral line in the bottom plot support this sell signal and suggest that the downward pressure will persist. The future of token is unclear and as more traders and whales leave their positions more decline cannot be ruled out.