PEPE: Whale behavior flashes concerning signs
- Lookonchain’s data revealed that whales were selling their PEPE holdings.
- Supply outside of exchanges decreased, but positive sentiment went up.
Pepe’s [PEPE] price has remained bearish for weeks now, causing a significant reduction in the memecoin’s market cap. Considering the press time market trend, the possibility of PEPE losing its spot on the list of the top 100 cryptos by market cap seemed pretty likely to happen soon.
How much are 1,10,100 PEPEs worth today?
According to CoinMarketCap, PEPE’s price had declined by 28% and 14% in the last seven days and past 24 hours, respectively. At the time of writing, the coin was trading at $0.000001018 with a market cap of over $398 million, making it the 87th largest crypto by market cap.
To add to the dread, PEPE’s price decline was accompanied by a massive increase in its trading volume – over 100% – typically a bearish signal.
Whales are selling
Lookonchain’s data revealed that whales were actually selling their assets. This suggested that big players were losing confidence in the memecoin.
As per the tweet, a whale made 1,182 Ether [ETH] on PEPE and sold 375.8 billion PEPE worth $306,000 at a loss of 76 ETH. Another whale who made $352,000 on PEPE sold 257.9 billion PEPE at a loss of $35,000.
Whales/SmartMoneys are selling $PEPE.
A whale deposited 649B $PEPE($761K) 1 hr ago.
— Lookonchain (@lookonchain) June 5, 2023
What these indicators mean
A look at PEPE’s 4-hour chart revealed that the bears clearly had an advantage. The MACD’s data suggested that bulls were nowhere close to bears. Moreover, the 20-day Exponential Moving Average (EMA) was resting below the 55-day EMA.
However, both the Relative Strength Index (RSI) and Money Flow Index (MFI) were both in oversold zones, which could increase buying pressure over the coming days.
Should a trend reversal be expected?
Metrics suggested that the coin was still under selling pressure. PEPE’s supply on exchanges increased substantially while its supply outside of exchanges declined. However, investors still had high hopes as the total number of holders remained stable over the last seven days.
The memecoin’s MVRV Ratio also plummeted sharply. This decreased the chances of a sudden northbound price movement.
However, it was interesting to note that despite the massively bearish price action, positive sentiment around PEPE increased in the last seven days.
Realistic or not, here’s PEPE market cap in BTC‘s terms
How are DOGE and SHIB faring?
The entire memecoin ecosystem seems to have been going through a tough time. Dogecoin [DOGE] and Shiba Inu [INU] both registered price declines over the last 24 hours and past week, which looked concerning.
However, their situation was not as dire as PEPE’s, as the price decline was not in double digits. At press time, DOGE was trading at $0.06672, while SHIB’s value was $0.000008033.