PEPE price faces decline as whales reduce activity

The price of PEPE (CRYPTO:PEPE), a popular meme coin, is at risk of further decline as key market participants, known as whales, begin to withdraw from the network.

Currently trading at $0.00000785, PEPE was expected to break out of a bullish descending wedge, which could have led to a price rally.

However, investor sentiment is turning bearish, reducing the chances of a recovery.

The pullback of whale investors, who typically handle significant transactions, is contributing to this negative outlook.

In the past two weeks, the daily transaction volume of high-value trades, particularly those over $100,000, has decreased by 60%, dropping from $83 million to $33 million.

This drop in large transactions indicates a loss of confidence among major players, affecting broader market sentiment.

Additionally, overall participation in the PEPE network has declined notably.

Active addresses have fallen to a six-month low as investors become more hesitant to engage with the meme coin.

The lack of substantial price recovery has provided little incentive for holders to move their assets, leading to stagnation in market activity.

Currently, PEPE’s price is hovering above a key support level at $0.00000775.

While the descending wedge pattern suggests a potential 80% rise toward the all-time high of $0.00001725, the likelihood of this occurring seems slim under the current market conditions.

Without a change in investor sentiment or renewed whale activity, PEPE may struggle to break above $0.00001000, potentially leading to prolonged consolidation.

If market dynamics shift and investor confidence returns, PEPE could turn $0.00001000 into a support level, paving the way for further gains and potentially invalidating the current bearish outlook.

However, until stronger bullish signals emerge, the meme coin remains at risk of continued price weakness.

At the time of reporting, Pepe is priced at $0.05771.