As the memecoin witnessed a substantial price drop, a whale sold its PEPE holdings at a loss.
PEPE’s exchange outflow spiked during the time its price declined.
A few market indicators turned bullish on the memecoin.
Pepe [PEPE] has witnessed massive price volatility in both directions over the last few months. As the entire crypto market fell victim to a price correction, the memecoin’s value also dropped substantially over the last 24 hours.
PEPE witnessed a dump
As per a LookonChain tweet, a whale sold 825 billion PEPE at a loss over the past three days. The same whale withdrew 3.5 trillion PEPE—worth $7.6 million at the time—from Binance on 8 and 13 May.
After that, the whale sold 1.44 trillion coins in August, resulting in a loss of more than $1.4 million. This suggested that whales’ confidence in the memecoin was declining.
This was also evident from LunarCrush’s data, as bearish sentiment around the memecoin increased by more than 80% last week.
However, a check on the memecoin’s other metrics painted a completely different picture. As per Santiment’s data, while the memecoin’s price dropped, investors started to accumulate more. This was evident from the spike in its exchange outflow while the coin’s price dropped.
The memecoin’s supply on exchanges dropped while its supply outside of exchanges increased, which is bullish. Moreover, PEPE’s supply held by top addresses also went up in the last few days, reflecting high accumulation.
Should investors expect a trend reversal?
As the memecoin’s price action registered an uptick in the past hour, a few of the market indicators turned bullish. For instance, the Money Flow Index (MFI) went up. Additionally, after a sharp decline, PEPE’s Relative Strength Index (RSI) registered a slight uptick, which gave hope for a price uptick.
Nonetheless, the MACD still favored the sellers as it displayed a bearish crossover.
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