Within the last day, two PEPE whales may have sold almost one trillion PEPE.
PEPE long-term investors, who have been cashing out since March, are more vulnerable to price drops, according to on-chain statistics.
The creation of a daily head-and-shoulders pattern might lead to a significant correction for PEPE.
After important insights showed that long-term investors had been steadily recording gains since March, PEPE fell roughly 2% on Wednesday. It seems like the advance is making PEPE form a head-and-shoulders pattern on the daily chart, which might lead to a significant correction.
The price movement and on-chain measures of PEPE suggest a possible decrease.
Looking at the data from Lookonchain, it seems that certain PEPE whales have been selling down their holdings over the last day. A whale that invested $3.13 million in 420B PEPE between August 5 and August 12 may have made only $30K after selling all of its assets after the market fall.
After the transaction, another whale, who had previously invested $8.34M to amass 750.38B PEPE, sent $4M worth of 500B PEPE to the Kraken exchange, perhaps losing $2.3M. As of this writing, the whale's holdings of 250.33B PEPE are valued at $2.02 million.
According to Santiment's statistics, the latest dump was not limited to only these whales. As of 12:00 GMT on Wednesday, the exchange inflows of PEPE tokens spiked beyond 1.44 trillion.
Whenever the meme coin's value goes up or down, PEPE holders may have been selling their coins. There have been spikes in the 365-day Dormant Circulation, which measures the movement of coins during the previous year. These spikes occur most often when PEPE tries to fall after reaching a new peak.
This group may now be more affected by price drops than rallies, particularly because the 180-day holders sold off some of their holdings during March's market surge before moving on to the 365-day Dormant Circulation group.
This kind of thing happens when people keep ancient coins, which means they're not very strong and could sell them after major price changes.
It seems that PEPE long-term holders (LTH) have been constantly taking profits since March, according to the 180-day to 365-day Realized Cap HODL Waves. As this measure falls, it indicates that older coins are being spent or sold, and when it rises, it indicates the opposite. Pepe LTHs have steadily reduced their holdings, as seen in the figure below.
According to the technical analysis, PEPE is showing signs of a head-and-shoulders formation on the daily chart. If PEPE breaks below the left shoulder's low around $0.00000570 and breaks through the neckline at $0.00000760, it may see a significant correction.
To disprove the bearish argument, a daily candlestick close above $0.00001405 is required.
Since the value of popular meme currencies tends to mirror that of Bitcoin, this study is also vulnerable to fluctuations in the price of Bitcoin.
