Despite Hayes’ sale, exchange inflow data shows that other traders are unwilling to sell PEPE.
- PEPE’s recent price decline saw Arthur Hayes sell his stash at a $22,000 loss. Despite this sale, PEPE exchange inflows remain subdued showing an unwillingness by the broader market to sell.
Pepe [PEPE] has continued its bearish streak after a 10% drop in seven days to trade at $0.00000886 at press time. Trading volumes also remained subdued after a 16% decline in 24 hours per CoinMarketCap.
PEPE’s recent price decline saw BitMEX co-founder, Arthur Hayes, exit his trade. As AMBCrypto previously reported, Hayes had placed a $252,680 bet on PEPE on 27th September after the price surged to a monthly high.
However, after holding the meme coin for six days, Hayes deposited his entire stash to exchanges at a loss of $22,000 according to SpotOnChain.
Despite this sale, exchange inflow data shows that other traders are unwilling to sell PEPE at current prices.
According to on-chain analytics platform Glassnode, more than 2 trillion PEPE tokens have been withdrawn from exchanges in the last two days. PEPE’s netflows also flipped negative after five consecutive days of inflows.
Source: Glassnode
An increase in exchange outflows eases the short-term selling pressure on PEPE, which could support a price recovery.
PEPE price outlook
A look at PEPE’s one-day chart suggests that the recent price drop could be the market correcting an imbalance following violent price swings in late September.
After PEPE quickly moved from $0.00000822 to $0.00001156 within three days, it created a Fair Value Gap (FVG). The recent price decline saw the market fill this inefficiency.
This places the meme coin in a unique position for a price recovery.
Source: Tradingview
PEPE is currently testing a resistance at the midline of this FVG at $0.00000907. If it breaks above this midline, it could act as a confirmation that buyers are gaining control, setting the stage for further gains.
After filling this gap, the Directional Movement Index (DMI) made a bullish move with the negative DI converging with the positive DI.
This move suggests that the bearish momentum is weakening while the bullish momentum is gaining strength.
Furthermore, the Relative Strength Index (RSI) at 50 shows that the market is relatively neutral. Traders should watch out for a bullish crossover of the RSI line above the signal line to confirm a bullish trend.
If the coin fails to break above the FVG midline and drops below support at $0.00000843, it could plunge further to collect liquidity at $0.00000744 before making a decisive move.
Funding rates flip to negative
PEPE funding rates have flipped negative and stood at -0.0166% at press time per Coinglass. This metric is currently at the lowest level since early August.
Source: Coinglass
This data suggests that short positions are dominating the market as traders bet on further price drops.
While this is bearish, a sudden upward move in price could trigger a short squeeze as short-sellers buy PEPE to close their positions. This would in turn drive further price gains.
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