PEPE Price Drops 10% as Whale Sell-offs Trigger Death Cross

• On-chain shows that PEPE whales have distributed more tokens, leading to a price decline to $0.000018.
• The 4-hour chart shows the formation of a death cross, indicating that the value could continue to drop.
• PEPE’s price is likely to drop to the 0.236 Fibonacci retracement level if the trend remains the same.

The price of frog-themed meme coin PEPE has dropped by 10% in the last 24 hours. This price action is in stark contrast to the performance between November and December when the price climbed from $0.0000076 to $0.000027.

This year, the token climbed to $0.000022, hinting at a sustained rally. However, things changed yesterday as the meme coin’s value tanked. Currently trading at $0.000018, this analysis reveals what impacted the decline and what could be next for the memecoin.

PEPE Decline Intensifies as Whale Netflow Turns Negative

According to IntoTheBlock, the large holders’ netflow is down to -242.39 billion. The netflow measures the difference between the number of tokens bought and sold by crypto whales who hold between 0.1% and 1% of the circulating supply

When the flow increases, it indicates that whales are buying more tokens compared to the amount sold. A decrease, on the other hand, indicates that whales are distributing more tokens.

Should these key stakeholder’s distribution persist, PEPE’s price might continue to experience downward pressure.

Following this sell-off and price decrease, PEPE formed a death cross on the 4-hour chart. A death cross is a pattern that occurs when a short-term moving average crosses below a long-term moving average.

The Exponential Moving Average (EMA) is an indicator that uses recent price changes and historical trends to determine its trend. When the EMA is above the price, the trend is bearish, while a bullish trend occurs when the indicator is below the price.

Therefore, this crossover indicates that bearish momentum is intensifying, reinforcing the possibility of a longer downtrend. As seen below, the 50 EMA (yellow) has crossed above the 20 EMA (blue).

Beyond that, PEPE’s price has also dropped below both indicators. Should this trend continue, then the meme coin’s value is likely to trade lower than $0.000018.

PEPE Price to Hit Lower Values?

An assessment of the daily chart also reveals that the PEPE price might remain in a downtrend for some time. One reason for this assertion is the Cumulative Volume Delta (CVD).

The CVD is an indicator that measures the level of buying and selling volume around a cryptocurrency. When the indicator rises and displays a green histogram bar, it signifies increased demand.

If sustained, this could lead to higher prices. However, in PEPE’s situation, the CVD is negative, showing that selling pressure is much higher than demand.

Should the selling volume continue to outpace bullish dominance, PEPE might struggle to hold $0.000018. In a highly bearish circumstance, the price might drop to  $0.000013 (the  0.236 Fibonacci retracement level).

However, if demand for the token increases, this trend might change. If that happens, PEPE’s price might rally to $0.000024.