Pepe [PEPE] has witnessed notable gains over the previous week, with an increase of 13.07%.
These profits have enhanced financial returns for holders with long-standing investments and significant holdings. As a result, investors, particularly large holders, have seized the opportunity to cash in on their gains.
Reportedly, a savvy whale traded 217 billion Pepe tokens for $4.54 million on Kraken. Following the transaction, the whale realized a profit of $767,000. Despite divesting these tokens, the whale still possesses 1.21 trillion Pepe tokens valued at $25.1 million spread across two wallets.
Typically, when whales begin to offload assets, their rationale may involve profit maximization or risk mitigation strategies.
Impact on Pepe’s Performance Charts
As anticipated, the increased selling pressure has had a negative impact on Pepe’s price movement. Presently, Pepe is being traded at $0.00002049, reflecting a 1.51% decline according to daily charts.
Nevertheless, it’s important to acknowledge that this downtrend is not solely attributable to the whale’s actions; the broader market sentiment remains bearish.
The bearish outlook is evident through a bearish crossover observed on the Directional Movement Index (DMI) two days ago, indicating a strengthening downward trend for the memecoin.
This downward trajectory is further supported by a decreasing Advance-Decline Ratio (ADR) falling below 1. A value below 1 on the ADR signifies that the memecoin is encountering more losses than gains.
Moreover, the overall weighted sentiment surrounding the memecoin leans towards negativity, revealing prevailing pessimism in the market.
Furthermore, the majority of investors are leaning towards short positions as evidenced by short traders occupying 55% of the total accounts.
With the market predominantly driven by short traders, it indicates a bearish stance among traders who foresee further price declines.
Lastly, Pepe’s stock-to-flow ratio has hit zero, indicating a surplus in supply. This oversupply situation implies downward pressure on the memecoin’s pricing in the market.
In essence, despite recent gains, a solid price recovery for the memecoin is yet to materialize. Given the prevalent dominance of sellers and bearish sentiment alongside the earlier whale sell-off, market conditions are currently favoring a potential drop to $0.000019. Nonetheless, a shift in dynamics with increased buyer participation could propel the memecoin to reattain $0.000021.