PEPE, a popular meme coin, has lost 4% of its value, erasing some of the gains made during the recent GameStop-inspired rally. The token's price could drop another 18%, wiping out all gains from the rally, as holders continue to take profits, leading to increased selling pressure.

The return of the legendary trader "Roaring Kitty" sparked gains in top meme coins, including PEPE, Dogecoin, and Shiba Inu. However, PEPE holders are consistently taking profits, leading to downward pressure on the token's price. A whale trader, who accumulated 1.4 trillion PEPE tokens between December and February, sold 10% of their holdings for a profit, sparking concerns of a potential decline.

PEPE's price could decline by 18%, sweeping liquidity at $0.00000777, the 50% Fibonacci retracement level of the rally from the April 13 low to the May 15 top. The Relative Strength Index, a momentum indicator, suggests a decline in PEPE's price is likely. However, if PEPE closes above $0.00001012, it could invalidate the bearish thesis.

PEPE faces resistance at the 2024 top of $0.00001161, and a decline from here could lead to a further drop in price. As the meme coin market continues to evolve, PEPE's ability to adapt and innovate will be crucial in shaping its success.