PEPE Whale Transactions Spike 257%, Is Pepe Coin Price Top in Sight?
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?
Slowdown in Bitcoin Warns Market-wide Pullback
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.
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.
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.
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.
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.
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.
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.
Frequently Asked Questions
Why is Pepe Coin price dropping today?
What is the key support level for PEPE in this setup?
How are whales influencing PEPE price action?
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