PEPE Price Pulls Back as Developer Team Liquidates 22 Billion Tokens: Is the Rally Over?

A bearish wave has hit the Pepe Coin community after the developer team sold off nearly 22 billion PEPE. Following this sell-off, Pepe shed off some of its past week's gains, slipping off $0.000017 to trade around $0.000015

According to data from Spot On Chain, Pepe development team liquidated 21.49 billion PEPE worth $355,000 on Binance and Decentralized Exchanges. This sale followed PEPE's impressive 130% 30-day price increase, raising investors' concerns about a pump-and-dump action.

Large Token Sale Likely Influencing PEPE's Price Today

The latest token dump isn't isolated; Spot On Chain noted a similar past sales pattern. According to the report, the developer team had often sold PEPE since it began to rally late in February.

The team has sold a total of 282.8 billion PEPE worth $2.28 million before the price decline. This implies that the developers' actions contribute to PEPE's price volatility.

Nevertheless, despite the sales, the developer team still holds a sizable amount of Pepe. According to on-chain data, the team still holds 2.522 trillion PEPE valued at $41.229 million.

These sales raise concerns among investors about whether there will be future dumps and further decline for PEPE. However, it could be a temporary dip for consolidation before the rally continues.

Pepe trades at $0.00001659, having declined 1.8% in the last 24 hours. A close look at the price chart would provide more insights into PEPE's next price move.

PEPE Approaching the $0.00001716 Resistance Level, Is the Rally Over?

PEPE has formed a Doji candlestick on the daily chart as the sellers force a rejection at the $0.00001716 price level. PEPE's rally began on May 20, forming a large green candle on the daily chart, which persisted till May 21.

Although the sellers attempted to force a downtrend on May 22, the rally continued as the buyers maintained control. PEPE rallied above the $0.00001716 resistance level, flipping it into a strong support level on May 27.

However, the sellers have re-entered the market at the $0.00001716 price level and are attempting to halt the rally. Nevertheless, the general sentiment for PEPE is still bullish based on the indicators attached to the chart.

The RSI at 77.32 suggests an overbought condition, but it continues to rise despite the slight decline and might reach 80 soon. The MACD indicator mirrors this bullish sentiment with a strong buy signal today.

The MACD is above its signal line with bullish histogram bars, suggesting buyers are still active and determined to overcome the $0.0001716 resistance.

Given the ongoing bullish momentum, PEPE will likely rebound from the current retracement and rally above $0.00001716 in the coming days. However, traders must watch out as an overbought market condition often signals a retracement.

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