PEPE’s Collapse Forces Whales to Unload Their Positions
The PEPE has experienced a staggering drop of over 50% in just 5 days, plummeting from $0.00000927 to $0.00000698. This sudden correction led to a wave of massive sell-offs by the whales, who liquidated more than one trillion of PEPE tokens.
One of these institutional investors notably sold 438 billion PEPE, incurring a loss of $434,000. Another trader holding a position worth $21.6 million on the memecoin suffered a loss of $3.23 million. To avoid liquidation, they had to inject $3.8 million of USDC into Hyperliquid to convert part of their position into cash.
A Return to Expected Support Levels
Despite this selling pressure, PEPE is currently trying to stabilize around the support level at 0.50 of the fibonacci, which is $0.00000698. If this support holds, the token may aim to reclaim the resistance zones at $0.00000811 and $0.00000927.
However, a failure at this level would likely trigger a new wave of sales, pushing PEPE back towards the supports at $0.00000653 (0.618 fib) and $0.00000593 (0.786 fib). The declining MACD indicates that the bearish momentum is not yet exhausted.
The dramatic fall of PEPE and the massive whale sell-offs illustrate the extreme volatility that characterizes this memecoin. Investors must exercise the utmost caution and adopt strict risk management if they wish to expose themselves to this speculative market. A return to support levels could set the stage for a rebound, but the bearish momentum is not yet fully exhausted.
