Is the Pepe Coin Price Recovery at Risk as Whales Dump 41 Trillion Tokens?

Pepe Coin price recovery has stalled at a crucial resistance level, where bulls need to flip to confirm more upside. This stall is likely happening as Ethereum price struggles to move above the resistance at $2,000. If Pepe price fails to pierce this resistance, and as whales continue selling, it is likely to crash and retest the YTD low.

Pepe Coin Price at Risk as Whales Dump Tokens

Pepe price is facing substantial selling pressure from large holders who are commonly known as whales. Data compiled by Santiment shows that the supply of Pepe tokens held by these investor stands at 148.7 trillion. That is a 41 trillion drop since these investors held 165 trillion token at its peak in February this year.

This increased selling likely explains why the token crashed by double digits from its highest level this year. Additional data indicates that the 90-day Mean Dollar Invested Age (MDIA) has been in a downtrend, suggesting increased selling.

Further, Pepe Coin price may be at risk now that Ethereum price has struggled to move to the psychological point at $2,000. Moving above $2,000 will be important for both ETH and meme coins in its ecosystem like Pepe and Shiba inu.

On the positive side, there are signs that the selling pressure is fading as the supply has held steady since April 24. Another positive for the Pepe Coin price is that the number of tokens on exchanges has dropped. It dropped from 255.81 trillion on Tuesday last week to the current 254.9 trillion. A drop in coin volume on exchanges is a positive sign, as it indicates that there is no significant buying pressure.

Pepe Price Technical Analysis: Stalls at Key Level

The chart below shows that the value of Pepe has been in a slow recovery after bottoming at $0.00000572 this month. This was a crucial level, as it formed a small double-bottom pattern with a neckline at $0.00000917.

A double bottom is widely seen as a highly popular bullish reversal pattern. A complete rebound is usually confirmed when the price rises above the neckline. There are signs that Pepe is struggling to move above this resistance, putting it a risk of a reversal.

In this case, a reversal would cause it to drop and retest the YTD low of $0.000005721, which is approximately 40% below the current level. A drop below the lowest level this year will validate a more dire Pepe forecast.

Fortunately, Pepe coin price could also stage an 87% surge if it clears the neckline of this double-bottom pattern. If this happens, it will likely surge to $0.00001712, the highest swing on May 28 last year.