Pepe Crypto Down 12%: Healthy Correction Or Price Crash?

Pepe's (CRYPTO: PEPE) price slump has raised concerns, but its growing user base and positive long-term outlook suggest potential for future gains.

What Happened: Lookonchain data reveals that a whale deposited 150 billion PEPE (worth $2.72 million) into Binance to cut losses amid the price drop.

Earlier, on Nov. 28, the whale had withdrawn 150 billion PEPE (valued at $2.94 million) and 60 billion SHIB (worth $1.52 million) from Binance.

At current prices, the whale is facing a $219,000 loss on PEPE and $136,000 loss on SHIB.

Trader Notes: Davie Satoshi, a crypto trader, believes that Pepe's drop from its all-time high indicates the end of the first uptrend.

He sees the second wave as a potential precursor to a new all-time high, maintaining a positive outlook and views the current correction as a healthy reset and an opportunity for accumulation.

Satoshi also notes that the momentum built from these resets positions Pepe for potential growth toward a $100 billion market cap.

Seth, another crypto trader, pointed out that Pepe has been trading within a channel since March.

The price recently retested the top of this channel and was rejected, now testing the mid-channel again.

The 1-day RSI is at a level similar to past bounces, suggesting a potential recovery. However, the outlook remains dependent on broader market trends like Ethereum, Bitcoin and the S&P500.

Statistics: Plazma reported that 1,059 new Pepe holders joined the community, bringing the total to over 1,100 new holders as of Dec.19.

Robinhood now holds 3.1% of the PEPE supply, indicating strong retail interest.

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