Amid the ongoing crypto correction triggered by high-impact news on Wednesday from the U.S. Federal Reserve and the Bank of Japan, Pepe (PEPE), a frog-themed meme coin based on the Ethereum (ETH) network, dropped around 8 percent in the last 24 hours to trade about $0.00001045 on Thursday, during the early New York session.
The mid-cap meme coin, with a fully diluted valuation of about $4.4 billion and a daily average traded volume of around $748 million, flashed a midterm bearish outlook after struggling to maintain bullish momentum.
Moreover, Pepe’s price closed the past two months with a bearish outlook, and based on historical data, the crypto industry could continue in a downward trend in August.
Pepe Whale Dumps 400B Units
According to on-chain data analysis conducted by Lookonchain, a whale investor deposited 400 billion Pepe units, worth $4.22 million, to the Binance crypto exchange earlier today. As of this writing, the whale investor still had a balance of around 395 billion Pepe units, worth approximately $4.1 million.
Market Impact and Expectation
The whale investor could trigger further selling pressure to the 266,842 holders of Pepe in the coming weeks. Furthermore, Bitcoin’s fear and greed index has already dropped from over 72 percent, indicating greed, to around 52 percent, neutral, in the past two days.
From a technical standpoint, Pepe price has formed a macro reversal pattern, characterized by a head and shoulders (H&S) pattern coupled with a bearish divergence on the daily Relative Strength Index (RSI).
If the bearish trend continues in the coming weeks, Pepe’s price should establish a support range between $0.000009 and $0.000007, which coincides with the 0.5 and 0.618 weekly Fibonacci Retracement.
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