PEPE takes a hit after GameStop inspired rally, here’s why it could dip lower

PEPE, one of the largest meme coins in the crypto ecosystem has wiped out 4.19% of its value early on Thursday. The return of legendary trader “Roaring Kitty” associated with GameStop’s 2021 rally catalyzed gains in top meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF), Popcat (POPCAT) and PEPE, among others. 

PEPE is under downward pressure as holders are taking profits consistently, in response to the meme coin’s price gain. 

PEPE holders take profit, push price lower

Data from crypto intelligence tracker Lookonchain shows that PEPE holders are consistently taking profits. As the meme coin rallies, PEPE holders are shedding their holdings taking profits consistently. 

A whale tracked by Lookonchain started selling part of their holdings for a profit. After consistent accumulation between December and February 2024, the trader had accumulated 1.4 trillion PEPE tokens. 

The whale sold 140 billion PEPE, 10% of their holdings for $1.57 million. The trader holds another 1.26 trillion PEPE worth $14 million and the Return on Investment (ROI) is as high as 943%, per the tweet. 

A $PEPE smart money started selling part of $PEPE at a profit.

He bought $PEPE almost every day from Dec 1, 2023 to Feb 12, 2024, spending a total of $1.49M to buy 1.4T $PEPE.

14 hours ago, he sold 140B $PEPE(10% of total position) for $1.57M.

He currently holds 1.26T $PEPE… pic.twitter.com/ThWLwZUQgf

— Lookonchain (@lookonchain) May 15, 2024

PEPE could suffer an 18% decline

PEPE could wipe out all gains from the recent rally catalyzed by GameStop rally, with a nearly 18% decline. PEPE started its uptrend on April 19, since then the meme coin has formed higher highs and higher lows. 

The meme coin climbed to its 2024 peak in the rally catalyzed by “Roaring Kitty’s” return, at $0.00001161. In its decline, PEPE could sweep liquidity at $0.00000777, the 50% Fibonacci retracement level of the rally from the April 13 low of $0.00000393 to May 15 top of $0.00001161. 

The momentum indicator, the Relative Strength Index crossed into the overbought zone on May 14. The indicator suggests a decline in PEPE price is likely. 

PEPE/USDT 1-day chart 

If PEPE closes above $0.00001012, it could invalidate the bearish thesis. PEPE faces resistance at the 2024 top of $0.00001161. 

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