Pepe Coin, a prominent meme coin, faces negative dynamics after a major token sale. Analysis indicates possible further decline.
Major PEPE Sale: Market Impact
Blockchain tracker Lookonchain reported that 427 billion PEPE tokens, worth $8.5 million, were dumped onto the Kraken exchange. Despite this, the investor still holds 1 trillion tokens with a $2 million profit. This is not the first dump; in late December 2023, the investor also offloaded a significant amount of PEPE, leading to a substantial profit.
Technical Analysis and PEPE Levels
According to CoinPedia, PEPE has formed a bearish 'head and shoulders' pattern on the daily chart, suggesting a potential breakdown. The current support level has weakened, and a further drop of 20% to $0.000013 is possible, although the Relative Strength Index (RSI) indicates oversold conditions, which could suggest upside potential.
Impact on Market Positions and Investor Interest
Concerns among investors have arisen due to the price decline and bearish trend, leading to a 15% drop in open interest according to Coinglass. At the time of writing, PEPE is trading near $0.0000178, marking a decline of over 5.5% in the last 24 hours with a 10% surge in trading volume.
Pepe Coin is facing challenges in the market due to major holders' actions and bearish technical analysis, with investors closely monitoring the situation.
