After hitting an all-time high of $0.00002524 around three weeks ago, Pepe [PEPE] has faced challenges in maintaining its upward trajectory. Consequently, the memecoin has been trading within the range of $0.000022 to $0.000018.
Despite a market correction, the recent surge to the all-time high has resulted in substantial profits for long-term investors.
Now, with Pepe struggling to push higher, many long-term holders, particularly whales, are opting to sell their holdings in order to maximize their gains.
Large Volume Sale of 356.2 Billion Pepe Tokens by a Whale
Spot On Chain reported a significant move as a major PEPE investor started clearing out their assets. Over the last 24 hours, this whale has transferred 356.2 billion Pepe tokens, valued at $7.3 million, to the Kraken exchange.
Having acquired 375.65 billion tokens back in 2023, following a withdrawal from Gemini, the whale has now initiated sales in February 2024, summing up to $7.54 million in total cashout.
When whales begin offloading their holdings, it suggests their aim to maximize profits post-rally or their fear of losing all gains once the uptrend loses momentum.
This trend highlights a sense of uncertainty in the market, as continuous selling by large investors can lead to a decrease in prices due to oversupply.
How Does This Sale Impact Price Trends?
According to CryptoCrypto’s analysis, this move stems from the prevailing bearish sentiment among major holders, reflecting in increased outflows compared to inflows. Data from IntoTheBlock indicates that large holders have been consistently divesting over the past four days.
The net flow has transitioned from 381.86 billion tokens to -534.57 billion Pepe tokens, signaling active selling by most whales.
Additionally, the decline in the MVRV Long/Short Difference, dropping from 41% to 37%, further signifies the diminishing confidence among long position holders in the market.
A decrease in MVRV Long/Short Difference indicates declining profit margins, prompting holders to rethink their market confidence levels.
What Lies Ahead?
While whale sell-offs often create downward pressure on asset prices, Pepe’s recent recovery contradicts this notion. Currently trading at $0.00002056, Pepe has experienced a slight 0.09% daily increase. Furthermore, the altcoin has shown improvements on both weekly (10.69%) and monthly (145.11%) charts.
In conclusion, with whales adopting bearish sentiments and short-term holders eyeing higher profits, Pepe is likely to continue consolidating.
Given the ongoing struggle between bulls and bears, Pepe appears poised to stay range-bound for the foreseeable future.
If the current price momentum persists, Pepe could potentially retest the $0.0000227 resistance level. On the other hand, should bearish trends dominate, support levels may form around $0.00001885.