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Highlights
- Pepe coin price has dropped to key support as whales dump.
- The coin has failed to drop below this trendline since April last year.
- That is a sign that the coin may rebound soon, although potential risks remain.
Pepe coin (PEPE) hovers at a crucial support level after plunging by over 65% from its all-time high. Its crash has mirrored the performance of most meme coins, including big names like Dogecoin and Shiba Inu. So, is the Pepe Coin price at risk after whales deposit 2.3T to CEX exchanges, or will it rally against the odds?
Pepe Coin Price Crashes as Whale Offloads 2.3T PEPE Amid Smart Money Selloff
Third-party data shows that the number of Pepe coins in centralized exchanges continued rising this week. An increase in CEX inflows, especially by whale investors, is usually a negative sign as it points to more selling.
Santiment data shows that Pepe whales moved 2.3 trillion worth of tokens valued at $22 million to centralized exchanges (CEX). Pepe had wallet balances of 2.83 trillion tokens on February 11, which then dropped to 510 billion on the 13th. That is a sign that these whales offloaded their tokens to CEXs, a sign that they were selling their tokens as a sign of capitulation.
More data shows that smart money investors have dumped the Pepe coin in the past few months. There are now just 61 smart money holders of Pepe, down from 82 in November. These investors hold 9.59 trillion Pepe tokens, down from 12 million in the same period a year earlier.
Whale dumps and smart money investors selling is a bearish factor that explains the current Pepe coin price crash. However, historically, such periods of negativity often become good periods to accumulate coins.
MVRV Indicator Hints Rebound Likely
Meanwhile, the Market Value to Realized Value (MVRV) indicator has dropped, a sign that accumulation may be going on. The 365D MVRV indicator moved to minus 43% on February 7.
The last time the MVRV indicator was this low was in February last year when it moved to minus 24, which triggered a Pepe surge by 342%. As such, the MVRV hints that the coin is in an opportunity zone, which may lead to more gains in the near term.
The MVRV indicator is a popular tool that compares an asset’s market value and the realized value and then applies a Z score. It is used to track the profit and loss of a coin’s holders in a certain duration, in this case 365 days. A negative data indicates that these investors are in a loss, and is where most smart money accumulation happens.
Pepe Coin Price Analysis as it Sits at a Key Support
The daily chart is sending mixed signals about the Pepe coin price. On the positive side, the coin crashed to $0.00000811 last week as most coins dropped. This was an important support level since it failed to drop below the trendline in April, August, September, and November last year. It always bounced back whenever it dropped to that support level, signaling that it may also rebound now. For example, it surged by 270% after nearing that support in November.
On the negative side, the coin recently formed a death cross as the 200-day and 50-day Weighted Moving Average (WMA) flipped each other. It has also formed a small bearish flag chart pattern, a continuation sign.
Pepe Token Targets
Therefore, the value of Pepe may rebound to the 200-weighted moving average level at $0.000015, up by 50% from the current level.
The bullish Pepe forecast will become invalid if it drops below the ascending trendline. Such a drop will bring the next support at $0.0000059, its lowest level in August.
Frequently Asked Questions (FAQs)
1. Can the Pepe coin price rebound as whales sell 2.3 trillion tokens?
2. Which is a potential Pepe price catalyst?
3. Which are the top Pepe targets?
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