PEPE Price Could Fall Further as Long-Term Holders Continue to Sell Off
PEPE fell nearly 2% on Thursday following key news that long-term holders have been taking profits since March. The move appears to be creating a head-and-shoulders pattern on PEPEâs daily chart, which could trigger a sharp correction.
PEPEâs On-Chain Indicators and Price Action Point to a Drop
Several PEPE whales have dumped the asset in the past 24 hours, according to data from Lookonchain. One whale who spent $3.13 million to buy 420 billion PEPE during the market sell-off on August 5 and 12 may have sold his entire holding for a profit of just $30,000.
Following the move, another whale who spent $8.34 million to accumulate 750.38 billion PEPE moved $500 billion PEPE worth $4 million to the Kraken exchange, likely to realize a $2.3 million loss. The whale still held 250.33 billion PEPE worth $2.02 million at the time of writing.
The recent sell-off may not have been limited to these whales, as PEPE inflows to the exchange spiked to over 1.44 trillion PEPE tokens by the end of Wednesday, according to Santiment data.
This suggests that this group of investors may be more sensitive to price declines than to price increases, especially after 180-day holders sold some of their assets during the March market rally before moving to the 365-day Dormant Circulation group.
This behavior shows that holders of old coins have weak sentiment and may sell off when there is a significant price movement.
