- A Pepe whale sold 356.2 billion tokens worth $7.3 million.
- Pepe has remained stuck in a consolidation range over the past two weeks.
Since achieving an all-time high of $0.00002524 nearly three weeks ago, Pepe [PEPE] has struggled to maintain an upward trend. The memecoin has been consolidating between the $0.000022 and $0.000018 range.
Despite the recent market correction, the previous rally to the all-time high resulted in substantial profits for long-term holders.
As the memecoin faces challenges in generating further gains, long-term holders, particularly large whales, have started to sell off their holdings to maximize their profits.
Pepe whale sells 356.2B tokens
According to Spot On Chain, a PEPE whale has initiated the process of selling their holdings. In the past day, this whale has transferred 356.2 billion Pepe tokens valued at $7.3 million to Kraken.
Source: Spot On Chain
Having accumulated 375.65 billion tokens in 2023 through a withdrawal from Gemini, the whale has now decided to sell in February 2024, cashing out a total of $7.54 million.
Whale selling indicates a desire to maximize profits after a rally or a fear of losing gains as an uptrend loses momentum, showcasing a lack of confidence in the market. Continuous selling by whales can lead to price declines due to oversupply.
Impact on price charts?
AMBCrypto’s analysis suggests that the recent whale dump reflects a bearish sentiment among large holders in the market.
Source: IntoTheBlock
Data from IntoTheBlock shows a negative large holder netflow over the past four days, indicating active selling by most whales.
Source: Santiment
The declining MVRV Long/Short Difference further confirms the bearish sentiment, dropping from 41% to 37%.
When the MVRV Long/Short Difference decreases, it indicates a loss of confidence among long position holders as profit margins diminish.
What’s next?
Despite expectations of a negative impact on price due to whale selling, Pepe has shown moderate recovery on price charts.
Currently trading at $0.00002056, Pepe has recorded a 0.09% daily increase. The altcoin has also seen gains of 10.69% on weekly charts and 145.11% on monthly charts.
In conclusion, with bearish sentiment from whales and short-term holders seeking higher profits, Pepe is likely to continue consolidating.
Read Pepe’s [PEPE] Price Prediction 2024-2025
Therefore, amidst the tug of war between bulls and bears, Pepe is expected to remain within a consolidation range.
If the current price gains gain momentum, Pepe could reclaim the $0.0000227 resistance level. Conversely, if bears dominate, support for Pepe is likely to be found around $0.00001885.
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