Pepe Coin Price Rallies Despite Whales Dumping 1 Trilion PEPE In 24hrs, Is It a Fakeout?

Pepe Coin (PEPE) has failed to make strong gains in the last one month, considering that it has dropped by more than 11% within this time. As of July 9, Pepe Coin price was trading at $0.0000102 with a slight 2.7% increase in 24 hours and $673 million in traded volumes. Despite the gains recorded today, whales seem to be selling after they offloaded more than 1 trillion tokens within a day, as a bear flag indicates that there might be a 50% crash on the way.

Whales Dump 1 Trillion PEPE Tokens

PEPE whales could be getting ready to sell their tokens and reduce the possibility of making losses, as seen in the decline of their holdings. IntoTheBlock data shows that in just 24 hours, whales have sold more than 1.16 trillion tokens after the balance of their wallets dropped from 647 billion to -521 billion tokens.

When whale wallets are no longer buying tokens and have decided to sell, it might show that they are expecting the price to drop. This behaviour comes alongside the formation of the bearish flag pattern on the daily chart.

Pepe Coin Price Faces 50% Drop Amid Bearish Flag Pattern

Pepe Coin price might be close to recording a crash because of creating a bearish flag pattern, which is usually a sign that bearish traders are on the verge of taking control. The pattern also shows that the gains that started in late June are about to end, and the PEPE price might go back to its previous downward trend.

The height of this flag pole is the 49% drop that happened within one month to a low of $0.00000830. If the same decline happens now and the price of Pepe Coin drops below the support of the ascending channel forming the flag, it is possible that it might crash to $0.00000480.

The ADX is also showing that the parallel channel that created the flag pole might become exhausted because the upward trend is not strong enough. This indicator could confirm the Pepe Coin price prediction that is created by this bearish pattern.

At the same time, there are very few traders who are willing to buy Pepe Coin at the current price because of the CMF indicator that has remained negative. This is another sign that the upward trend is about to stall, and the price could most likely crash.

The formation of this pattern also comes despite a previous CoinGape analysis revealing increased meme coin activity earlier this week that drove gains for tokens such as Dogecoin. If Pepe Coin price continues with its slow performance while other meme coins are gaining, it could see traders turn their attention from PEPE to other coins.

In conclusion, the Pepe Coin price is inching closer to a crash because, besides forming a bearish flag pattern, it is also under the pressure of whales dumping their tokens. This bearish outlook may only be invalid if whales begin to buy tokens, which will help to support the upward trend.