Whales dumped 1.5 trillion tokens before the Pepe Coin price crash
Pepe Coin price crashed to a multi-month low, leading to a surge in liquidations as the crypto market dived.
- Pepe Coin price crashed to a multi-month low amid the crypto market crash.
- Whales and smart money investors have been dumping their tokens.
- The coin has been forming two key risky patterns on the daily chart.
Pepe (PEPE), a popular meme coin on the Ethereum (ETH) ecosystem, plunged to a low of $0.0000388, its lowest level since February 2024. This crash led to over $20 million in liquidations.
Pepe’s crash coincided with the turbulence in the crypto market after President Donald Trump unveiled new tariffs on China. This announcement resulted in over $19 billion in liquidations and more than $500 billion in total losses across the crypto market.
The Pepe Coin price crash happened at a time when whales were reducing their exposure to the coin. Data shows that whales sold over 1.5 trillion coins between September 26 and last Friday, a sign that they expected the price to plunge.
The same happened among investors, who dumped over 2 million coins. They now hold 1.67 trillion coins, down from 3.17 trillion in September.
Pepe Coin price risky patterns explain the whale sell-off
A potential reason why whales and so-called “smart money” investors sold their Pi coins is that it has been forming two risky patterns on the daily timeframe chart.
The most recent pattern is the descending triangle pattern, whose lower side was at $0.0000091. Its diagonal line connects the highest swings since May 22 this year.
Most notably, the coin has been forming a giant head-and-shoulders pattern since May. The head section of this pattern was the all-time high of $0.00002821.
The right and left shoulders are at $0.000016, the highest point in May this year and last year. Additionally, the neckline was at $0.0000056, its lowest level since March and April this year, as well as August and September last year.
Therefore, the most likely scenario is that the Pepe price will continue to fall in the coming weeks. The initial target will be the year-to-date low of $0.0000038, followed by $0.0000020.
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