Pepe's whale deposits 254.65 billion tokens on Binance
Pepe fell 7.8% in the last 24 hours as bearish sentiments persisted.
A Pepe whale has transferred 254.65 billion tokens to Binance.
During the last week, Pepe experienced a sharp decline as the cryptocurrency market as a whole turned red.
Since reaching a high of $0.00002567, the memecoin has dropped to a low of $0.000018. This downward trend has caused panic selling, especially among large holders.
Pepe's whale sells 254.65 billion tokens
Pepe's whales have begun to sell. Thus, according to Spotonchain, a whale deposited 254.65 billion tokens worth $5.15 million on Binance in the last 24 hours.
Usually, a deposit on exchanges by whales shows that they are preparing to sell. When whales start selling, it generally causes selling pressure, leading prices to drop.
This increase in sales among whales arises as the memecoin has experienced a sustained downward trend over the last week.
During the market downturn, whales tend to sell to minimize their losses or take their realized gains. This market activity often precedes a price correction.
Impact on price charts?
As expected, the increase in selling pressure, especially from large holders, generally leads to price drops. True to this, Pepe was trading at $0.00001863 after a 7.80% drop on the daily charts and a decrease of 7.56%.
While whale sell-offs could result in price drops, AMBCrypto's analysis shows that Pepe was experiencing a shift in market sentiment from bullish to bearish.
For example, Pepe's Long/Short Difference shows that short positions are dominating the market. With shorts occupying 53% of positions, it suggests that most traders are bearish and expect prices to fall further.
Moreover, Pepe's long/short MVRV difference has decreased in the last week from 39 to 35. This often arises from an increase in sales by long-term holders, signaling their lack of confidence in market prospects.
Thus, long-term holders are bearish.
Likewise, the total liquidation of long positions has increased in the last week, reaching a peak of $4.97 million.
While investors may be forced to exit their positions, their lack of conviction to pay premium fees and hold these positions shows their bearish attitude.
Finally, Pepe's MACD has made a bearish crossover. This not only signals a shift in sentiment from bullish to bearish but also a strengthening of downward momentum with sellers dominating the market.
In simple terms, Pepe is experiencing a strong shift in sentiment towards bearish. These conditions have pushed whales to sell to minimize their losses or take realized profits.
With strong bearish sentiment, the memecoin could fall further. If so, Pepe will find support around $0.00001576.
