Pepe price could be on the verge of a big surge in the coming days after forming the highly bullish falling wedge pattern. This rebound will happen despite on-chain data showing that whales were selling their tokens.
Whales are Selling their Pepe Coins
Third-party data is sending a red flag about Pepe, the second-biggest meme coin in the crypto industry. A report shows that whales have sold 890 billion tokens between September 1 and today. Their holdings have dropped to 7.47 trillion today, down from 8.32 trillion on August 1.
Whales refer to big investors in cryptocurrency. In most cases, their activity tends to have an impact on a coin because of their weighting. They often buy when a coin is low and sell after a substantial surge.
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More data shows that smart money investors, who are known for their expertise in trading, have also dumped their tokens recently. They now hold 321.12 billion tokens, down from 325 billion in August.
The other notable red flag for Pepe Coin is that public figure investors have also dumped their tokens. They now hold 101.9 billion coins, down from a peak of 312 billion in August.
The extensive selling by these investors has driven more tokens to exchanges. There are now 257.85 trillion coins, up sharply from 253 trillion in August.
Cryptocurrencies normally flood exchanges when there is intense selling pressure. This means that, in theory, there is a risk that the Pepe coin price could crash soon.
Pepe Price Technical Analysis
Meanwhile, technicals show that the value of Pepe could be on the verge of a 40% surge in the coming weeks. That’s because the coin has formed a falling wedge pattern, which comprises two falling and converging trendlines. It has already moved above the upper side of the wedge pattern.
The Relative Strength Index (RSI) has moved slightly above the neutral point at 50, which is a sign that the rally is regaining momentum.
Pepe is approaching the strong, pivot, and reverse point of the Murrey Math Lines. Therefore, the most likely scenario is where the token rebounds and hits the important resistance level at $0.00001475, which is about 42% above the current level.
The bullish Pepe price forecast will become invalid if it drops below the ultimate support level at $0.0000091.
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