PEPE, a prominent cryptocurrency meme coin and the third largest in its category, recently faced a considerable drop of 20% in its value due to negative remarks made by the Federal Reserve Chair regarding cryptocurrencies. This downturn in PEPE’s price not only affected the coin itself but also triggered a widespread sell-off across the entire cryptocurrency market.
Significant Sale of PEPE Tokens by a Major Investor
During this period, a large investor unloaded a staggering 150 billion PEPE tokens, valued at $2.72 million, on Binance, one of the largest cryptocurrency exchanges worldwide. This move resulted in a loss of $219,000 for the investor, as reported by Lookonchain, a blockchain-based transaction tracker.
The sell-off occurred amidst a general decline in market prices, impacting various digital assets.
According to Lookonchain’s post on X (formerly Twitter), the investor withdrew PEPE tokens on November 28th, along with 60 billion Shiba Inu (SHIB) meme coins.
Besides such large-scale transactions, data from Coinglass, an on-chain analytics firm, suggests that even long-term holders are selling off their holdings on exchanges.
Statistics on PEPE spot inflow/outflow indicate a significant $6.80 million inflow of PEPE tokens into exchanges.
This uptick in token movement from wallets to exchanges is seen as a negative sign by holders, potentially hinting at a price drop and growing selling pressure.
PEPE’s Technical Outlook and Critical Levels
Despite the significant token dump by investors, PEPE managed to stay above the crucial support level of $0.000018. Analysts believe that the token’s price has started to recover after finding stability at this level.
Based on recent market trends, if PEPE maintains its position above the $0.000018 threshold, it could potentially surge by 40% to hit the next resistance level of $0.000026 in the future.
Furthermore, PEPE’s Relative Strength Index (RSI) is currently close to the oversold territory, suggesting a possible price bounce-back.
Upon considering these on-chain metrics and technical analysis, it appears that the significant sell-off reflects apprehension among major investors and long-term holders.
As of the latest update, PEPE is trading around $0.0000191, experiencing a price drop of more than 12% over the past 24 hours. However, its trading volume has surged by 63% during the same period, indicating increased involvement from traders and investors amidst the ongoing market downturn.