Whales Sell Off, But Pepe's Chart Signals a Bullish Rebound

Pepe (PEPE), a meme-based cryptocurrency, has recently shown signs of a potential price rebound, despite ongoing selling pressure from large holders. Technical analysis indicates the formation of a falling wedge pattern, a bullish chart pattern typically associated with trend reversals. This pattern, combined with the price stabilizing at the ultimate support level of the Murrey Math Lines, suggests that Pepe could see a near-term upward movement. The coin, which has fallen over 33% from its peak in July, is currently trading at $0.0000095 [1].

The falling wedge pattern is defined by two converging trendlines that connect a series of higher lows and lower highs. According to the analysis, the upper line connects higher lows since July 22, while the lower line links the lowest levels recorded in August and September. As these lines converge, they indicate a potential breakout. If the pattern completes successfully, Pepe is expected to rise toward a key resistance level at $0.00001340 [1]. This level is considered a strong pivot point, which could attract further buying interest from both retail and institutional traders.

However, the positive technical outlook is occurring alongside significant selling by large investors. Data from Nansen shows that smart-money investors have reduced their holdings from 326 billion tokens in August to 322.2 billion as of the latest report. Similarly, whale investors have dumped over 800 billion Pepe tokens in the past few days, bringing their total holdings down to 7.61 trillion from 8.4 trillion on August 31. This heavy selling by experienced market participants typically signals bearish pressure, as large investors are often seen as market leaders [1].

Despite these selling pressures, analysts suggest that the Pepe coin could still benefit from broader market conditions. A potential rebound in the overall crypto market, particularly following weaker-than-expected non-farm payrolls data, could provide a tailwind for Pepe and other high-volume tokens. Additionally, steady futures open interest in the token could support a recovery, as it indicates ongoing speculative interest among traders [1].

Market observers are also watching for further developments in the broader crypto space, including regulatory changes and institutional adoption. For instance, a growing number of crypto ETFs are awaiting approval from the U.S. Securities and Exchange Commission (SEC), which could signal increased legitimacy and investor confidence in digital assets. While Pepe is not a direct beneficiary of these developments, a more favorable regulatory environment could boost risk-on sentiment and indirectly support its price [2].

In conclusion, while Pepe faces short-term headwinds from large investor selling, the formation of a falling wedge and its positioning at a key support level suggest a potential rebound. Investors are advised to monitor both technical developments and broader market sentiment for further clues on the token’s near-term trajectory.

Source: [1] Pepe Coin price nears breakout despite aggressive whale dumping (https://crypto.news/pepe-coin-price-nears-breakout-despite-aggressive-whale-dumping/) [2] Stock Reports - 007 Stock Chat (https://www.007stockchat.com/stock-reports/)