The PEPE token has seen a massive 2,000% price increase in a short time. After that, 3 signs show that the bulls are about to fall into the trap. Accordingly, the altcoin is at risk of losing 20 percent in May.
Altcoin has entered a sharp correction phase!
cryptocoin.comAs you follow, the new meme-coin Pepe (PEPE) is up more than 2,000% since its debut a few weeks ago. According to analysts, it has now entered a sharp correction phase. The price of PEPE fell to $0.00000089 on May 3, down nearly 35% from its record high of $0.00000138 two days ago. As a result of the correction, its market value fell by approximately $80 million. Thus, it went out of the top 100 crypto currency index.
A mix of technical and fundamental indicators point to further declines for PEPE price.
Individual interest in PEPE falls
PEPE’s daily trading volumes declined on centralized (CEX) and decentralized exchanges (DEX) as prices fell. The same thing happened with Google trends for the keyword “Pepe Coin”. Accordingly, the score from 100 dropped to 7 in one day. This shows that his individual excitement has decreased in the last 48 hours.
The distribution of PEPE whales is alarming
According to data from CoinCarp.com, the 100 richest PEPE addresses, also known as “whales,” control 45% of the circulating supply of the token.
These 100 addresses can belong to 100 different people. However, it is possible that an organization controls more than one address. This gives a limited number of whales more say in the direction of PEPE’s future price trends. Therefore, it increases the risk of price manipulation.
Lookonchain, for example, revealed that five addresses allegedly linked to the Pepe team made $1.23 million in profits in a weak liquid market. They bought 8.87 trillion PEPE tokens at a low price and sold over 90% of their tokens on Uniswap at a higher price.
Some of the biggest PEPE holders are centralized exchanges. However, over-the-counter PEPE whales have recently reduced their positions, according to data tracked by analyst 008.eth. This points to profit taking, which coincides with the ongoing price correction.
10% correction for altcoin on the way?
Crypto analyst Yashu Gola evaluates the technical indicators of PEPE. PEPE rose without concrete foundations behind it. Also, gains could be wasted in the short term as there are fewer whales controlling the rise. The technical data agrees. For example, the four-hour chart shows PEPE forming higher highs, but the relative strength index (RSI) forming lower highs since April 30. In other words, a bearish divergence that indicates PEPE’s upside momentum will weaken in the short term.
Additionally, PEPE appears to be on its way to the 50-4H exponential moving average (50-4H EMA; red wave) near $0.0000047410, down 20% from current price levels. Another break below the red wave could cause the altcoin to test the $0.00000020-0.00000017 range as the next downside target.
Of course, the PEPE token is new. Therefore, there is not enough price history to predict future price movements. Moreover, meme-coins are notorious for their sharp fluctuations and large price movements. Dogecoin, for example, has risen 7,000% since 2020 thanks to the vocal support of billionaire investor Elon Musk.
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