Frog-themed Pepe (PEPE), the third largest meme coin, is currently facing a potential price crash as whales and traders have been booking massive profits in recent days. According to Santiment, over $30 million in profits have been realized by PEPE whales and traders in the past six days, signaling a bearish outlook for the coin.
One of the key indicators of the upcoming price crash is the decrease in whale transaction values of $100,000 or higher by 70%. This drop from 129 transactions to 36 transactions in just six days suggests that investors and whales are losing interest in PEPE, which could lead to a price drop in the near future.
As of now, PEPE is trading around $0.0000071 with a 6% decline in the last 24 hours. Despite an increase in trading volume by 65%, the bearish sentiment surrounding the coin is evident.
Technical analysis of PEPE shows that it is currently trading below the 200 Exponential Moving Average (EMA) on a daily time frame. This indicator is commonly used by traders to determine the trend of an asset, and in this case, it suggests a bearish outlook for PEPE.
Additionally, a bearish head and shoulder price action pattern has formed on the daily timeframe, indicating a potential price decline in the coming days. If PEPE closes a daily candle below the $0.00000644 level, there is a high probability that it could drop by 20% to the $0.0000051 level.
It is important to note that this bearish scenario will only come to fruition if PEPE closes below the $0.00000644 level. Otherwise, the price may remain stable. Investors and traders should keep a close eye on these key levels to make informed decisions regarding their PEPE holdings.