- A Pepe Whale sold 356.2 billion tokens worth $7.3 million.
- Pepe has remained stuck in a consolidation range for the past two weeks.
Since reaching an ATH of $0.00002524 almost three weeks ago, Pepe [PEPE] is struggling to maintain upward momentum. As such, the memecoin has continuously consolidated within the range of $0.000022 and $0.000018.
Despite the perceived market correction, the recent rally to ATH saw long-term holders make huge gains.
As the memecoin struggles to make more profits, these long-term holders, especially whales, have turned to selling to maximize their profits.
Pepe Whale sells 356.2 billion tokens
According to Spot on chainA PEPE whale has started unloading their belongings. In the past day, this whale has deposited 356.2 billion Pepe tokens worth $7.3 million into Kraken.
Source: Spot On Chain
After starting to hoard Pepe in 2023 with 375.65 billion tokens following a withdrawal from Gemini, the whale was sold in February 2024. In total, the Whale paid out $7.54 million.
When whales turn to selling, it means they are either trying to maximize their profits after a rally, or are afraid that all their profits will turn to losses after an uptrend loss momentum.
To that extent this reflects a lack of confidence in the market. Often the continued removal of whales causes prices to drop due to oversupply.
Impact on price charts?
According to AMBCrypto’s analysis, this whale dump comes from the general market sentiment among large holders, which is very bearish.
Source: IntoTheBlock
This is evident from the increased outflow among large farmers compared to the inflow. Data from IntoTheBlock shows that the major holder’s net flow has remained negative over the past four days.
This dropped from 381.86 billion tokens to -534.57 billion Pepe tokens, indicating that most whales were actively selling.
Source: Santiment
This sentiment was further reflected in the decreasing MVRV Long/Short difference, which fell to 37% after reaching 41%.
When the MVRV Long/Short difference falls, it means long position holders lose confidence in the market as their profit margins continue to decline.
What now?
Although whale sales are expected to have a negative impact on the price of an asset, this has yet to be reflected. On the contrary, Pepe has shown a moderate recovery on the price charts.
In fact, at the time of writing, Pepe was trading at $0.00002056. This marked an increase of 0.09% on the daily charts. Likewise, the altcoin has risen on the weekly and monthly charts, rising 10.69% and 145.11% respectively.
In conclusion, as the whales turn bearish, while short-term holders turn to higher profit margins, it appears Pepe will continue to consolidate.
Read Pepe’s [PEPE] Price forecast 2024–2025
So now that the market is seeing a tangle between bulls and bears, Pepe will remain stuck within a consolidation range.
Therefore, if the current gains on the price charts gain momentum, we could see Pepe regain the resistance level at $0.0000227. Therefore, if the bears outpace the market, Pepe will find support around $0.00001885.