PEPE Whale Transactions Spike 257%, Is Pepe Coin Price Top in Sight?

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Highlights

  • PEPE forms a double top near $0.000015 with a 7.42% dip, risking breakdown to $0.00001063.
  • Whale transactions spiked 257% to 720 on May 12, hinting at a possible cycle top.
  • Despite bearish patterns, 72% of Binance traders hold PEPE longs, pushing OI to $583M.

Pepe Coin (PEPE) price trades at $0.00001399 and is down by 3.19% today. This drop coincides with Bitcoin’s intraday pullback, risking a $102k breakdown. With whale transactions spiking 257%, PEPE price top could be in sight. Will this sell signal lead to a 25% crash in the near term?

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Slowdown in Bitcoin Warns Market-wide Pullback 

At present, Bitcoin price is up by 1.15% at $103,814 today as the struggle continues to overcome the $104k peak. The BTC price at a low-volume zone warns of a pullback to the $102k high-volume zone. If the bitcoin price crashes below the $102k, a potential sustained drop into the $102.6k-$93.1k zone is likely, where BTC could consolidate for weeks. This drop in Bitcoin could influence Pepe Coin and other altcoins.

BINANCE:BTCUSDT Chart Image by CoinGape_Markets

During consolidation, the downside risk to $93.1k will lead to a broader market correction, especially for highly volatile meme coins. Hence, with a weakening in the market leader, PEPE’s price could witness a pullback in the weeks to come.

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Are Whales Selling Off Before an Incoming Crash?

Following a strong bull run last week, a surge in Pepe whale transactions warns of a cycle top coming for PEPE. A surge in whale transactions following a rally typically signals a top formation, while a spike after a correction often translates to potential bottom. Historically, the peaks in whale transaction counts are a bellwether to a potential top formation after a bullish trend, as seen during May, November, and December of 2024.

Transaction Count by Size
Transaction Count by Size

Based on IntoTheBlock’s data, the transaction count of more than $1ook in value peaked at 720 on May 12, coinciding with the Pepe Coin’s peak at $0.000015. Generally, the peaks are formed with transactions crossing the 800 mark, signaling profit booking by whales.

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Pepe Coin Price Analysis Warns of Double Top Breakdown

Pepe Coin price jumped 100% from $0.0000075 to $0.000015 between May 6 and May 12. However, the meme coin fails to cross the $0.000015 psychological resistance, resulting in a sideways shift with $0.00001274 as baseline. 

The consolidation results in two peaks, hinting at a double top reversal with a 7.42% drop. To complete the bearish pattern, PEPE price must drop to the $0.00001274 neckline and break the short-term support trendline at $0.00001274. A four-hour candlestick close under the $0.00001274 neckline is mandatory for a decisive breakdown. In such a case, the double-bottom pattern forecasts a 25% crash to $0.00001063, calculated by adding the double top’s height to the neckline.

The Relative Strength Index (RSI) line shows bearish divergence as it declines from the overbought zone to the halfway line during PEPE’s uptrend. Furthermore, the MACD and signal lines fall after a negative crossover, suggesting a surge in underlying bearishness.

Pepe Coin price chart
Pepe Coin price chart

If the Pepe Coin price bounces back to violate the $0.000015 ceiling, the double top pattern will be nullified. According to Fibonacci levels, the 23.60% level overlaps with $0.000015 and targets $0.00001792 as immediate resistance if the trend flips, aligning with the Pepe price prediction

Is Blind Optimism Behind 72% of Binance Traders Holding PEPE Longs?

Despite the short-term pause in the PEPE price rally, heightened optimism in futures contracts anticipates an uptrend continuation. The Open Interest (OI) at $583 million sustains a near record-high level at $583 million, signalling strong traders’ interest. 

PEPE Futures Open Interest (USD)
PEPE Futures Open Interest (USD)

Additionally, as optimism reaches dangerous levels, 72% of PEPE traders on Binance hold a long position. This surges the Long/Short ratio to 2.57, signalling a strong bullish inclination. 

Binance PEPEUSDT Long/Short (Accounts)
Binance PEPEUSDT Long/Short (Accounts)

Despite the retail optimism, the recent 720 transactions peak bolsters the double top reversal to the $0.00001063 level. Hence, the on-chain and technical signal warns of a potential long-liquidation spike as OI nears $600 million.

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Frequently Asked Questions (FAQs)

1. Why is Pepe Coin price dropping today?

Pepe Coin is down 3.19% due to Bitcoin’s pullback and a potential double top pattern, signaling a bearish trend reversal.

2. What is the key support level for PEPE in this setup?

The $0.00001274 neckline acts as crucial support. A close below this confirms a double top breakdown, targeting $0.00001063.

3. How are whales influencing PEPE price action?

Pepe whale transactions above $100k surged 257%, historically marking local tops, and indicating possible profit booking ahead of a price drop.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.