Pepe (PEPE) slipped 1.04% over the past 24 hours, lagging behind the broader cryptocurrency market, which edged up by 0.36%. The decline stems from a confluence of bearish forces—whale-driven sell-offs, technical resistance, and waning demand—all converging to pressure the memecoin lower.
On-chain data reveals that large holders have been actively reducing their PEPE positions in recent days. Analytics firm Santiment reported a staggering 620% surge in whale transactions, signaling significant offloading activity. This influx of supply has overwhelmed buyers in a market where PEPE’s $2.49 billion valuation lacks underlying fundamentals, making it especially vulnerable to shifts in holder sentiment. Derivatives markets echo this caution: funding rates have turned negative at -0.005%, reflecting a prevailing bias toward short positions. Investors should monitor exchange inflows closely; any sharp uptick in PEPE deposits could foreshadow additional selling pressure.
From a technical standpoint, PEPE encountered stiff resistance near $0.00000637—the 23.6% Fibonacci retracement level—and its 7-day simple moving average at $0.000006514. The Relative Strength Index (RSI) cooled to 59.32 from previously overbought territory, while the MACD histogram flattened, indicating a loss of upward momentum. These signals likely prompted tactical sellers to exit near key resistance, reinforcing downward price action. That said, the 30-day SMA at $0.000004797—nearly 19% below current levels—could serve as a critical support zone if the downtrend continues.
Compounding these challenges is a broader shift in memecoin market dynamics. While the sector posted $4.75 billion in daily trading volume—a 17% increase fueled largely by Solana-based tokens like BONK, which surged 44%—PEPE failed to capture similar enthusiasm. Market attention appears to be pivoting toward projects touting tangible developments, such as Zero Knowledge Proof’s recent sports partnership, leaving legacy memecoins like PEPE struggling for relevance. Social sentiment metrics from Santiment further confirm this cooling narrative, with declining engagement and increasingly negative chatter amplifying bearish momentum.
In sum, PEPE’s recent weakness reflects a perfect storm of whale exits, technical rejection, and fading hype in a rapidly evolving memecoin landscape. While the 30-day moving average offers a potential floor, bulls will need to reclaim the $0.00000637 resistance level to reassert control. With Bitcoin dominance holding steady at 58.5%, any breakdown below key support could expose PEPE to a deeper correction, potentially revisiting December’s lows.
Source:: Pepe’s Precarious Pivot: Whale Selling Meets Technical Resistance