Here is the detailed analysis of the sudden drop in PEPE:
---
💥 1. Correction in the Overall Market
The overall cryptocurrency market experienced a sharp decline due to the liquidation of futures market positions exceeding one billion dollars, and the expiration of over three billion dollars in options on Bitcoin and Ethereum—leading to a wide selling wave.
This withdrawal coincided with a weakness in risk sentiment among investors, which specifically affected meme tokens like PEPE.
---
🐋 2. Whale Activity and Profit Taking
The market saw a rise followed by a sharp decline, and on-chain data indicates that whales began taking profits and selling large amounts, increasing selling pressure.
A report from Binance mentioned that 'Nascent' sold 175 billion tokens of PEPE – which directly contributed to the price decline.
---
📉 3. Negative Technical Signals
A bearish divergence appeared on the chart in the RSI and MACD indicators, heralding further correction.
Technical analysis also drew a formation resembling a descending triangle, threatening an additional decline of up to 30% if support is breached.
---
🌏 4. Macroeconomic and Geopolitical Disruptions
Trade tensions and tariffs (such as those announced by the United States) have negatively impacted market liquidity, including cryptocurrencies.
General fears of recession or monetary tightening made investors avoid high-risk assets like PEPE.
---
🔍 5. High Liquidity but Weak Absorption
Trading volume increased to about $1.6 billion, but this did not absorb the sell-offs, leading to a decline in the price.
Also, weak demand at support levels made price movements more sensitive to selling pressure.
---
⚠️ 6. The Virtual Nature of Meme Coins
PEPE is considered a speculative model, not based on technical projects or real use cases, making it susceptible to 'pump and dump' operations and quick selling after gains.
Today's drop (~12%) is a reminder of the volatility risks of these assets.
---
🔧 Conclusion and Recommendations
Main Reason Explanation and Suggested Action
Overall Correction Follow the performance of major currencies like Bitcoin/Ethereum.
Whales and Profit Taking Monitor the changes in major wallets via on-chain.
Bearish Technical Indicators Identify support levels (such as ~$0.0000106 and $0.000011) before re-entering the market.
Volatile Macroeconomics Avoid paying during economic or geopolitical pressures.
---
⚙️ Quick Summary: The sudden drop in PEPE resulted from overlapping pressures of overall correction, whale selling, negative technical signals, and the impact of the global economic situation. If you are considering buying or re-entering, it is wise to monitor technical support and whale activity.
