Pepe Coin prices have been falling continuously since May of this year, and this trend could accelerate if whales begin to surrender.
summation
- Pepe Coin price continued its free fall this week.
- Whales and smart money investors abandoned the tokens.
- The supply of Pepe tokens on exchanges continues to grow.
The Pepe (PEPE) token fell to $0.000003745, its lowest since October 10, and is down about 78% from its high in May this year.
On-chain data shows that whales have begun to surrender in the past few days. Whales hold 4.51 trillion Pepe tokens, down from a record high of $4.51 trillion this month. This sell-off could be a sign of capitulation as the coin has continued to hit lower lows.
The selling could be a sign of growing anxiety ahead of the Bank of Japan’s (BoJ) closely watched interest rate decision. Economists expect the bank to raise interest rates by 0.25% to 0.75%, which could increase volatility in the cryptocurrency market.
More data shows that smart money investors reduced their positions from 211 billion tokens to 209 billion tokens in November. This is important because investors are mostly known to execute profitable trades.
This activity coincided with a slow rebound in exchange supply. The current token count is 265.81 trillion, up from this month’s low of 203 billion. An increase in foreign exchange balances means an increase in selling by investors.
Meanwhile, the token’s futures open interest has been decreasing over the past few months. As liquidity continues to decline, the funding ratio remains neutral.
Pepe Coin price technical analysis
The daily timeframe chart shows that the Pepe Coin price has been showing a clear downward trend since peaking at $0.00001667 in May this year. It remained below all moving averages and parabolic SAR indicators.
The Awesome Oscillator and Bull/Bear Power indicators have moved below the zero line, which signals a win for the Bears. It remains below all moving averages and downtrend lines.
Therefore, the Pepe price prediction is most likely bearish and the initial target is the October low of $0.000002816. The price is about 30% lower than the current price.
The bearish outlook will be invalidated if the coin breaks above the dynamic resistance of its 50-day moving average.