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Pepe Drops 20%, Investors Dump Massive Volumes

Mon, 07/10/2023 - 17:00
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Arman Shirinyan
PEPE faces sharp price decline as profit-taking triggers market sell-off, with over 20% wiped off its value in matter of days
Pepe Drops 20%, Investors Dump Massive Volumes
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PEPE has been dealt a hard blow recently. After achieving a local top on July 4, the token's value took a sharp tumble, shedding more than 20% of its price over the subsequent days.

One of the key reasons behind this sudden plunge is attributed to significant profit-taking by large PEPE holders, popularly known as "whales." In the volatile and speculative landscape of meme tokens, sharp price movements often trigger whales to secure their profits, consequently exerting downward pressure on the token price.

PEPE chart
Source: TradingView

The notable event that sparked this downturn was the massive sell-off from one of PEPE's oldest whales. This entity disposed of a significant chunk of PEPE tokens around the recent price peak, leaving it with a balance of approximately $300,000 worth of the meme coin. This profit-taking at the local top triggered a ripple effect that impacted overall market sentiment and brought about the recent price drop.

While fluctuations are part and parcel of the crypto market, such rapid price drops can shake investor confidence, especially those new to the crypto space. However, the meme coin market, including PEPE, is particularly known for its extreme volatility, with tokens often experiencing meteoric rises and equally dramatic falls.

Everyone waits for Cardano

Cardano (ADA), one of the leading altcoins in the cryptocurrency space, has been charting an interesting path recently. Observers have noted that ADA is currently moving within an ascending triangle pattern, a bullish signal that often precedes a price breakout.

At present, Cardano is priced at $0.28, but analysts are closely watching for the coin to breach an upward resistance level that could accelerate the current trend. A break above this resistance would potentially lead ADA toward the next resistance level, coinciding with the 50-day Exponential Moving Average (EMA), around $0.3.

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Furthermore, the Relative Strength Index (RSI), a crucial momentum indicator, is on an upward trajectory. An increasing RSI is generally considered a bullish sign as it shows growing strength in the price movement.

However, as is the case with all technical analysis, it is important to keep in mind that these are probabilities, not certainties. Although an ascending triangle and a rising RSI usually point toward a potential upside breakout, market dynamics can change quickly, and various factors could influence Cardano's actual price movement.

XRP aims for 20%

XRP is currently staging a promising technical setup that might see the cryptocurrency surge by approximately 20% from its current price level. The key reasoning behind this potential move is consolidation observed at a crucial support level, which is also playing the role of trendline support.

A period of consolidation at a significant support level often indicates a possible upward movement, suggesting that XRP could soon witness an upward price surge. In the current scenario, the consolidation phase aligns perfectly with the 200 Exponential Moving Average (EMA), which is serving as a strong support zone.

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When a price level coincides with a notable EMA, such as the 200-day EMA, it often amplifies the support or resistance at that price point. In XRP's case, the current price is hovering around this strong support, bolstering its chances of rebounding.

Historical data is on XRP's side, too. Past performance shows that similar consolidations have led to significant upward price movements for the token. If history repeats itself, as it often does in the world of financial markets, we could see XRP gain around 20% from its current value, replicating the kind of bounce observed in such previous instances.

However, investors should be cautious and keep an eye on broader market sentiment. The world of cryptocurrency is notoriously volatile and can be influenced by a range of unpredictable factors. Always remember to base investment decisions on thorough research and risk management strategies.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.