"PEPE Plunges 70%: Whales Accumulate as Memecoins Tumble"

Memecoins and the broader altcoin sector have been subdued in recent weeks, with Bitcoin's dominance surging above 60%. The memecoin segment has witnessed a significant decline, with over $44 billion wiped out over the past three weeks. Pepe (PEPE), a frog-themed memecoin, has been one of the hardest hit, dropping nearly 70% from its December highs of $0.000028 to early November 2024 levels. This decline has erased all the gains from the 'Trump pump' earlier this year.

The recent price action has attracted the attention of large investors, or 'whales.' One such investor reportedly scooped up 280 billion PEPE tokens, increasing their position to $13.2 million. This suggests that some investors see the current discount as an opportunity to accumulate PEPE at lower prices.

Looking at the 3-day chart, the retracement in PEPE's price is back to the level that triggered the November rally. This price area has also doubled as the March 2024 peak and has relatively held further PEPE dumps, except for August. If this level holds steady again, it could mark PEPE's bottom, with the immediate rebound target being the 100-day EMA ($0.000012).

The Chaikin Money Flow (CMF) indicator suggests a likely reversal, showing improved capital inflows but still below average. However, the 3-day chart RSI was headed to an oversold zone at press time, but had yet to signal a reversal. Conversely, a break below the November support could drag PEPE lower to the next area below $0.000006.

Key on-chain metrics were firmly bearish at press time. The Social Volume has been on a downtrend since December, suggesting market interest across social media platforms has waned significantly. Additionally, the Weighted Sentiment was negative but slightly rebounded towards the neutral level. A positive sentiment, uptick in Social Volume, and decisive defense of the November support should be cues for a likely reversal on the price charts.