PEPE price under pressure as whale investor could cash out soon

Pepe (PEPE) retested the breakdown level of its ascending trendline on Friday, resulting in a 9% decline over the following two days. On-chain data indicates a positive spike in Exchange Flow Balance, suggesting a bearish price movement shortly.

Additionally, Lookonchain data reveals that a whale deposited the remaining 395.92 billion PEPE tokens, valued at $3.4 million, on Friday, following a prior deposit of 400 billion PEPE tokens worth $4.22 million on August 1, which further reinforces the bearish outlook.

PEPE price could decline further on failed trendline pullback retest

Pepe retested the ascending trendline breakdown level at $0.0000089 on Friday, which had previously acted as support. It declined 9% in the next two days. On Monday, it trades slightly higher by 1.5% at $0.0000078.

If the $0.0000089 level holds as resistance, PEPE could crash 32% and retest its daily support at $0.0000060.

The Relative Strength Index (RSI) indicator and Awesome Oscillator (AO) on the daily chart are trading below the neutral levels of 50 and zero. These momentum indicators strongly indicate bearish dominance.

PEPE/USDT daily chart

On-chain data also points to a bearish outlook for PEPE price. According to IntoTheBlock's In/Out of the Money Map (IOMAP), approximately 4,230 addresses bought 12.87 trillion PEPE tokens at an average price of $0.000008. If the price rises at this level, this significant amount of investors may opt to sell to get a breakeven on their positions.

From a technical analysis perspective, the $0.000008 resistance level aligns with the IOMAP findings, marking this zone as a crucial reversal point to monitor.

PEPE IOMAP chart

Santiment's Exchange Flow balance for PEPE shows the net movement of tokens into and out of exchange wallets. A positive value indicates more PEPE tokens entered than exited exchanges, suggesting selling pressure from investors. Conversely, a negative value indicates more PEPE left the exchange than entered, indicating less selling pressure from investors.

In PEPE's case, the Exchange Flow balance spiked from -299.91 billion to 773.91 billion from August 8 to August 9. This positive spike generally suggests increased selling activity among investors.

PEPE  Exchange Flow balance chart

Even though on-chain metrics and technical analysis point to a bearish outlook, if Pepe's price produces a daily candlestick close above $0.0000131, the daily high from July 24, the move would invalidate the bearish thesis by making a higher high on the daily time frame. This development could see PEPE's price rally 20% to the next resistance level at the June 1 high of $0.0000157.