Pepe Coin Price Eyes 30% Dip as Whales Start Capitulating

Source: CryptoNewsNet Original Title: Pepe Coin price eyes 30% dip as whales start capitulating Original Link: Pepe (PEPE) token fell to a low of $0.000003745, its lowest level since Oct. 10, and about 78% below its highest point in May this year.

Whale Capitulation Signals

On-chain data shows that whales have started capitulating in the past few days. Whales hold 4.51 trillion Pepe tokens, down from this month’s high of 4.51 trillion. This selling could be a sign of capitulation, as the coin has continued making a series of lower lows.

More data shows that smart money investors have reduced their positions from 211 billion tokens in November to 209 billion. This is important because these investors are known to execute mostly profitable trades.

Market Dynamics

The selling could be a sign of increasing weariness ahead of the closely-watched Bank of Japan interest rate decision. Economists expect the bank to raise interest rates by 0.25% to 0.75%, a move that may increase volatility in the cryptocurrency market.

These activities have coincided with the slow rebound of exchange supply. There are now 265.81 trillion tokens, up from this month’s low of 203 billion. A rising exchange balance indicates increased selling by investors.

Meanwhile, the token’s futures open interest has dropped in the past few months. Its funding rate has remained in the neutral phase as its liquidity continues to fall.

Technical Analysis

The daily timeframe chart indicates that the Pepe Coin price has been in a pronounced downward trend since peaking at $0.00001667 in May this year. It has remained below all moving averages and the Parabolic SAR indicator.

The Awesome Oscillator and the Bull/Bear Power indicators have moved below the zero line, a sign that bears have prevailed. It remains below all moving averages and the descending trendline.

Therefore, the most likely Pepe price forecast is bearish, with the initial target being at $0.000002816, its lowest point in October. This price is about 30% below the current level.

The bearish outlook will be invalidated if the coin moves above the 50-day moving average’s dynamic resistance.