Is Pepe Coin Price Top In? Whale Transaction Count Drops By 93%

Pepe Coin (PEPE) may have topped out, as on-chain data shows that whale transactions have fallen by a staggering 93%. Meanwhile, the profitability ratio is rising, raising the odds of profit-taking activity from traders, which may push the price below key support. As of June 30, Pepe Coin price was trading at $0.00000986 with a 3% intraday gain.

Pepe Coin Price Faces Downside Risk as Bullish Momentum Weakens

Pepe Coin price has been trading within a descending parallel channel for nearly two months. However, bulls were optimistic that this leading meme coin may break out of this channel after a golden cross emerged last week. However, unlike a similar crossover that happened in November last year, which triggered a strong 188% rally, the PEPE price is showing weakness. This weakness is not localized to PEPE, but can be seen across the crypto market, while Bitcoin is inches away from its ATH.

Six days after flashing this majorly bullish signal, the price of Pepe Coin has only gained by around 5%. The weak performance shows that the underlying momentum is weak and traders are not convinced that the price will surge.

The lack of a follow-through after a golden cross can also be a top signal showing that early buyers may have taken profits before the signal emerged. This topping out is further confirmed by the Chaikin Money Flow indicator, which has crossed over to the negative region, signalling that the selling pressure is notably higher than the buying pressure.

The above technical structure will likely have a bearish impact on the Pepe Coin price forecast, and the meme token may lose crucial support at $0.00000830.

On-Chain Data Signals PEPE Has Topped Out

One of the on-chain signs suggesting that the Pepe Coin price may have topped out is a notable decline in whale transactions. Per IntoTheBlock data, the large PEPE transactions exceeding $100,000 have declined by 93% from 32.9 trillion three weeks ago to the current 2.06 trillion.

This dip suggests that whales are not willing to accumulate PEPE. This hesitation also indicates that they anticipate a downside correction before they can re-enter the market.

Additionally, Pepe Coin’s on-chain profit-to-loss ratio recently soared to 2.55, which is often a bearish sign as investors might choose to sell to realize profits. This ratio has reached its highest level since early May.

The huge spike in this ratio can also be a top signal for PEPE, suggesting that more supply will likely enter the market from the wallets looking to realize profits. Moreover, looking at previous trends, a spike has often preceded a price correction for this token.

Therefore, as the technical structure shows a clear divergence between the CMF and the recently formed golden cross, it is likely that the Pepe Coin price loses momentum and the trend reverses. The hesitance by whales and the increased risk of profit-taking signals that such a reversal may be imminent.