As Pepe trades between key Fibonacci levels, on-chain whale activity hints at profit-taking. Is a drop to $0.000010 imminent?
As meme coins struggle to rebound in the altcoin rally, Pepe faces a sharp downside risk. The frog-themed meme coin’s technical outlook indicates a potential pullback as bullish momentum fades.
PEPE Price Analysis
On the daily chart, PEPE shows a bullish breakout from a triangle pattern, reaching a high of $0.00001550. However, it is now consolidating between the 50% and 61.80% Fibonacci retracement levels, at $0.00001227 and $0.00001470, respectively.
The overall trend has resulted in a golden cross between the 50-day and 200-day EMA lines, signaling a trend reversal. Amid the short-term consolidation, the MACD line has dropped under its signal line, triggering a bearish crossover. This suggests a significant loss in bullish momentum, with increasing bearish histogram bars.
As a result, the technical indicators point to a potential pullback toward the 50% Fibonacci level at $0.00001227. However, given the overall weakness in the meme coin segment, the correction could extend to the 200-day EMA near the $0.000010 level.
On the upside, a recovery above the 61.80% Fibonacci level could open the path toward the 78.60% level at $0.00001903.
Pepe Whales Booking Profit?
With Pepe at risk of a potential pullback, the number of large transactions has surged over the past month. According to IntoTheBlock data, whale transactions hit a 7-day high of 587 on May 23. As of the last 24 hours, the data recorded 267 transactions from whales.
The increased number of large transactions with a volume of more than $100,000 relates to heightened whale activity.
This trend is often associated with profit-taking and may suggest a local cycle top, similar to what was observed during the November 2024 rally.
Therefore, the recent spike in whale transactions following a short-term price surge raises the risk of a potential bearish reversal.
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