Pepe coin price retreated this week as whales continued selling and the crypto market sell-off intensified.
Pepe (PEPE), the second-biggest meme coin on Ethereum (ETH), plunged to a low of $0.00001043, down by 36% from its highest point in May.
This decline happened as Bitcoin (BTC) and most meme coins plunged because of profit-taking and geopolitical issues.
Pepe’s crash also happened as whales continued exiting their positions, signaling that they expected the downtrend to continue. The supply held by whales has dropped to 137.4 trillion, down from the year-to-date high of 166 trillion. Their holdings have fallen to the lowest point since November last year.
The Network Realized Profit/Loss metric has plunged into the negative zone, a sign that some sellers are exiting at a loss.
More on-chain data shows that active addresses have slumped to less than 3,000.
Pepe on-chain metrics | Source: crypto.news
On the positive side, Pepe has become cheap, which may push investors to buy the dip. The closely-watched MVRV ratio with the Z score has dropped to minus 0.192.
A negative MVRV ratio means that a coin’s market value has moved below the average price at which holders acquired their coins. It often signals that a coin is in a buy zone.
Pepe price technical analysis
Pepe chart | Source: crypto.news
The daily chart shows that the Pepe token price has decreased from last month’s high of $0.00001622 to $0.000011 today. It is consolidating at the 50-day and 200-day moving averages.
Pepe’s price has moved above the 23.6% Fibonacci Retracement level. It has also formed a cup-and-handle pattern, with the upper side at $0.00001622 and the lower side at $0.0000052.
The recent dip is likely part of the formation of the handle section of the C&H pattern. Therefore, if this pattern works out, the coin will likely bounce back and retest the all-time high of $0.00002712, about 135% above the current level. This view will be confirmed if it rises above the cup’s upper side at $0.00001622.