Recent trends have shown a notable decline in the value of Pepe, mirroring the overall downturn in the cryptocurrency market.
After reaching a peak of $0.00002567, this digital asset has slipped to a low of $0.000018, prompting concerns among major investors.
Large Volume of Pepe Tokens Sold by Whales
The sale of a significant amount of Pepe tokens has been observed as one whale transferred 254.65 billion tokens valued at $5.15 million to Binance within the last 24 hours, according to Spotonchain.
Typically, when whales deposit tokens on exchanges, it signifies their intention to sell, leading to a downward pressure on prices.
This surge in selling activity among whales corresponds with the ongoing downward trend in the Pepe market over the previous week.
During market downturns, whales often choose to sell their holdings to minimize losses or secure profits, a move that often precedes a correction in prices.
Effects on Price Movement?
As anticipated, intensified selling pressure, particularly from major holders, commonly results in price decreases. Indeed, Pepe’s value dropped to $0.00001863 following a 7.80% decline based on daily charts and a 7.56% dip.
While massive token sales by whales may lead to price dips, analysis by CryptoCrypto reveals a transformation in market sentiment for Pepe from positive to negative.
For instance, the Long/Short Difference for Pepe reflects a dominance of short positions in the market. With shorts accounting for 53% of total positions, it indicates a prevailing bearish outlook among traders expecting further price decreases.
Moreover, Pepe’s MVRV long/short difference has decreased from 39 to 35 over the past week, likely attributed to increased selling by long-term holders, indicating a lack of confidence in market prospects.
Consequently, long-term holders are displaying a bearish stance.
Furthermore, the total liquidation of long positions has notably increased in the past week, peaking at $4.97 million.
As investors are compelled to exit their positions, their reluctance to pay premium fees and maintain these holdings underscores their pessimistic outlook.
Lastly, the MACD indicator for Pepe has exhibited a bearish crossover, signaling a shift in sentiment from bullish to bearish and a reinforcement of downward momentum with sellers dictating market dynamics.
In essence, Pepe is undergoing a significant shift towards bearish sentiment, prompting whales to sell off assets to curtail losses or secure profits.
With a prevailing bearish sentiment, this cryptocurrency may witness further declines, potentially finding support around $0.00001576.