A large whale has sold 254.65 billion Pepe tokens worth $5.15 million, raising concerns about the future price trend of the meme coin as the broader crypto market declines.
The large sell-off by whales raises concerns
In the past week, Pepe has experienced a sharp decline, with the price dropping from a high of $0.00002567 to a low of $0.000018. This drop has triggered panic selling, particularly among large holders.
Recent data indicates that a whale transferred 254.65 billion tokens worth $5.15 million to Binance within 24 hours. Such transfers typically indicate a selling plan, which could create significant selling pressure, leading to further price declines.
Why are whales selling?
The sell-off is occurring within a broader downtrend in the market, where many assets are struggling to maintain their value. Whales often sell during such periods to minimize losses or secure profits from previous gains. This behavior can exacerbate market corrections and create downward pressure.
Impact on the price of Pepe
Increased selling pressure has negatively impacted the price of Pepe. At the time of writing, Pepe is trading at $0.00001863, corresponding to a daily drop of 7.80% and a weekly drop of 7.56%.
Market sentiment appears to be shifting from optimistic to pessimistic:
Sell positions dominate, accounting for 53% of the market, indicating traders are betting on further price drops.
The MVRV ratio (Market Value to Realized Value) for long-term holders has dropped from 39 to 35 in the past week, indicating a lack of confidence in the future potential of the coin.
Long-term holders are becoming pessimistic
Long-term holders, often considered a stabilizing force, are showing signs of pessimistic behavior:
Liquidations of buy positions have reached a weekly high of $4.97 million, indicating a decline in confidence in holding these positions.
The MACD indicator has turned pessimistic, signaling increased bearish momentum and seller dominance in the market.
What’s next for Pepe?
With a prevailing pessimistic mindset, the price of Pepe may face further declines. The next major support level is around $0.00001576, which could stabilize the price if reached.
As whales continue to sell and market sentiment weakens, Pepe may face additional challenges in maintaining its value. Investors should be cautious and closely monitor market conditions.
