Pepe Coin (PEPE) has recorded a slight price increase in the last 24 hours, rising by 2.7% to $0.0000102 on July 9. However, the recent gain comes amid a sharp decline of more than 11% in the last month and a bearish chart pattern that may suggest further downside.

Whale Activity Spikes as 1 Trillion PEPE Tokens Are Sold

Large wallet holders, commonly known as whales, have sold more than 1.16 trillion PEPE tokens within 24 hours. Data from IntoTheBlock shows that their netflow dropped from 647 billion to negative 521 billion tokens during this period.

Such large-volume sales by whale wallets are often linked to bearish price expectations. When whales reduce their exposure, it may suggest a lack of confidence in near-term price appreciation. Traders generally view whale dumping as a signal that further price declines could follow.

Bearish Flag Pattern Signals 50% Decline Risk

Technical indicators suggest that PEPE may be forming a bearish flag pattern on the daily chart. This pattern, if validated, may signal a continuation of the previous downtrend. The recent upward movement could be part of a short-term rally within this broader pattern.

The initial flag pole formed after a 49% price decline to $0.00000830 in June. If the current setup follows the same pattern, the PEPE price could fall toward $0.00000480. This would represent a drop of about 50% from current levels.

Additional indicators support the bearish outlook. The Average Directional Index (ADX) shows that the recent upward momentum is weakening. The Chaikin Money Flow (CMF) indicator also remains negative, indicating limited buying pressure.

Traders Shift Focus to Other Meme Coins as PEPE Lags

Although the level of interest in meme coin has grown nominally, PEPE has not performed better than other assets of the same type. Derivatives such as Dogecoin (DOGE) and Shiba Inu (SHIB) have also attracted the interest of investors as they have become increasingly innovative and active, and have a more positive appearance.

Even an analysis conducted recently observed that there has been a growth in the meme coin trade in the last few days. Nevertheless, PEPE has not been in line with its peers. This disparity might lead to the reorientation of traders to other successful meme coins in case the trend continues.

PEPE is currently offered at a 24-hour trading volume of $673 million. Although downside risks are not eliminated, short-term profits could still be achieved; nevertheless, there is a wider feeling among large participants, and the technical picture means we should be cautious.