Discover the reasons behind the substantial risk to Pepe Coin's price recovery, as whales have offloaded over 41 trillion tokens since February.
The recovery of Pepe Coin's price has reached a critical resistance level, which bulls must overcome to validate further upward movement.
This stagnation is likely occurring as Ethereum's price faces challenges in surpassing the $2,000 resistance.
Should $PEPE 's price be unable to breach this resistance, coupled with ongoing sales by whales, a decline and a retest of the year-to-date low is probable.
Pepe Coin Price at Risk as Whales Dump Tokens
The price of Pepe is experiencing significant selling pressure from major investors, often referred to as whales.
According to data gathered by Santiment, these investors currently possess 148.7 trillion Pepe tokens, reflecting a decrease of 41 trillion from the peak of 165 trillion tokens they held in February of this year.
The recent surge in selling activity likely accounts for the token's significant decline of over ten percent from its peak this year.
Additional analysis reveals that the 90-day Mean Dollar Invested Age (MDIA) has been trending downward, indicating heightened selling activity.
Furthermore, the price of $PEPE Coin may face challenges as Ethereum struggles to surpass the critical threshold of $2,000.
Achieving this level is crucial for both ETH and associated meme coins, such as Pepe and Shiba Inu.
On a more optimistic note, there are indications that the selling pressure is diminishing, as the supply has remained stable since April 24.
Additionally, the quantity of tokens available on exchanges has decreased, falling from 255.81 trillion last Tuesday to the current figure of 254.9 trillion.
A reduction in coin volume on exchanges is a favorable indicator, suggesting a lack of substantial buying pressure.
Pepe Price Technical Analysis: Stalls at Key Level
The following chart illustrates that Pepe's value has been gradually recovering after reaching a low of $0.00000572 earlier this month.
This level was significant as it created a minor double-bottom pattern with a neckline positioned at $0.00000917. A double bottom is commonly regarded as a prominent bullish reversal pattern.
A full recovery is typically confirmed when the price surpasses the neckline. However, there are indications that Pepe is having difficulty breaking through this resistance, which poses a risk of a reversal.
Should a reversal occur, it could lead to a decline and a retest of the year-to-date low of $0.000005721, approximately 40% lower than the current price.
A fall below this year's lowest point would substantiate a more pessimistic outlook for Pepe.
If Pepe coin price successfully surpasses the neckline of the double-bottom pattern, it may experience an 87% increase, potentially reaching $0.00001712, which was the peak value recorded on May 28 of the previous year.
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