- PEPE coin’s pullback hit over 20% amid capital rotations.
- Supply pressure on centralized exchanges was below March highs.
Pepe [PEPE], like the rest of the memecoin segment, tanked double digits as large investors (whales) rotated funds to other sectors.
The latest Spot On Chain update revealed that a whale has partially sold 130B (nearly $3M) of his PEPE holdings to open other altcoin positions in the past three days.
This has accelerated PEPE’s pullback to over 20%, measured from the all-time high (ATH) of $0.00002957. But how far can the decline go before a strong recovery?
PEPE coin recovery chances
Source: PEPE/USDT, TradingView
As of this writing, PEPE’s 12-hour chart showed a bearish market structure and a descending channel. The price momentum was weak, as demonstrated by the oversold reading of the Stochastic RSI.
Short sellers could still benefit if the price hit the lower channel or 50% Fib level. However, the furthest the drop could go was the golden ratio at 61.8% Fib level ($0.000014).
However, the RSI was still above the 50 mark, suggesting that demand was still solid despite being flat at press time. If more speculators jumped on the ‘buy the dip’ train, this could fuel a likely price recovery.
Source: PEPEUSDT, TradingView
On the upside, the trendline resistance target (white) could be reached if FOMO reignited the uptrend, especially if BTC soars above $100K.
Low sell pressure on CEXes
That said, PEPE appeared to have another shot at recovery. Santiment data showed that sell pressure across centralized exchanges (CEXes) was not as intense as seen in March’s local top.
In March, the PEPE supply on CEXes (yellow line) hit nearly 230T. As of this writing, the supply overhang has dipped to 171T. This could offer PEPE enough room to recover.
Source: Santiment
Read Pepe [PEPE] Price Prediction 2024-2025
In fact, there was an increased ‘buy the dip’ accumulation spree, as shown by the uptick in supply outside of exchanges (red) as prices declined.
Historically, these signals are deemed bullish indicators and suggest a likely price reversal for the frog-themed meme coin.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
