The main reasons for the decline of the PEPE coin:
1. Massive sell-offs by large investors (whales):
Major holders of the PEPE coin sold large quantities of tokens, with over 1.1 trillion tokens transferred to exchanges in a short period, increasing supply and putting pressure on the price.
2. Decreased interest from large investors:
The number of smart wallets holding PEPE has dropped from over 40 to just 17, indicating a decline in the confidence of professional investors in the coin.
3. Negative technical patterns:
Technical analysis indicates the formation of a "head and shoulders" pattern on the daily chart, which is considered a strong bearish signal, increasing the likelihood of continued decline.
4. Security concerns:
Changes in the multi-signature wallet settings of the PEPE project, along with the transfer of large amounts of tokens to external accounts, raised concerns about a potential "rug pull."
Future outlook:
While some indicators suggest the possibility of a price rebound, such as the decline in market value to realized value (MVRV) entering the buying zone, risks remain, especially with continued sell-offs by large investors.
Currently, investors are advised to exercise caution and monitor the market closely before making new investment decisions in the PEPE coin.