- PEPE faces growing bearish pressure as whales exit at a $7 million loss and on-chain metrics flash weakness, raising concerns about fading investor confidence.
- Despite oversold conditions hinting at a possible short-term bounce, the memecoin remains vulnerable to further downside unless bulls reclaim key resistance levels.
Pepe [PEPE] is facing mounting bearish pressure as large holders exit their positions at a loss, raising concerns about fading confidence in the memecoin. In the past week, two whales liquidated a combined 1.2 trillion PEPE tokens—worth over $12 million—back to Binance. Notably, both whales exited at a $7 million combined loss, signaling potential caution among major investors.
These exits came on the heels of a failed bullish breakout attempt. Despite forming a classic Cup-and-Handle pattern—a typically bullish setup—PEPE was unable to break above the key $0.00001200 resistance. The price has since retreated into a descending channel, with bulls struggling to defend the $0.00001014 support level.
Also read: OKB Price Surges to $54.7 After 42.4M Token Burn — Can It Break the $56 Resistance?
Bearish On-Chain Trends Weigh on Recovery
On-chain metrics are also painting a grim picture. Network activity has declined, with net network growth at just 0.70% and the proportion of “In the Money” wallets dropping by 7.07%. Additionally, large transaction volumes are down 5.18%, while concentration levels among top wallets remain flat—suggesting little new accumulation by major players.
The Network Value to Transactions (NVT) ratio surged to 137, an elevated level that historically signals possible overvaluation. A high NVT indicates the network’s market cap is growing faster than its underlying transaction activity—a dynamic that often precedes price corrections.
Meanwhile, the MVRV Z-score has slid to -0.29, meaning the average PEPE holder is sitting on unrealized losses. While this metric can imply undervaluation, in the current context of bearish sentiment and technical weakness, it leans toward continued downside risk.
Will PEPE Rebound or Slide Further?
Technical indicators suggest a possible short-term bounce, with the Stochastic RSI now oversold. However, unless bulls reclaim the $0.00001280 resistance with strong buying momentum, any recovery could prove temporary.
Overall, whale exits, weakening on-chain activity, and negative profitability metrics indicate fragile market confidence. Without a major catalyst to reverse sentiment, PEPE may remain exposed to further downside—even if oversold conditions offer brief relief.