Pepe Coin (PEPE) has experienced a meteoric rise in recent days, with its price surging by a staggering 75% in the past 24 hours. This significant price increase can be attributed to the coin’s listing on major cryptocurrency exchanges like Coinbase and Robinhood. However, on-chain data suggests that a potential sell-off may be imminent as early investors and whales begin to book profits.
Whale Dumping
A prominent PEPE whale has recently liquidated a substantial portion of their holdings, selling nearly 500 billion PEPE coins worth approximately $11.8 million. This move, highlighted by blockchain analytics firm Lookonchain, indicates that some early investors are taking advantage of the recent price surge to secure significant profits.
The whale in question had initially acquired 2.01 trillion PEPE tokens between May and September 2023, investing a relatively modest 1,170 ETH (worth $2.12 million at the time). By offloading a portion of their holdings, the whale has already realized a substantial return on investment, with an estimated total profit of $45 million.
Meme Coin Frenzy and Potential Correction
The broader meme coin market has been on a tear in recent weeks, fueled by the success of Dogecoin (DOGE) and other popular meme tokens. However, experts warn that the current level of hype and speculation may be unsustainable, and a correction could be on the horizon.
On-chain data from Santiment suggests that social sentiment surrounding meme coins has reached a fever pitch, indicating that a potential sell-off may be imminent. Additionally, the rapid increase in trading volume and open interest for PEPE and other meme coins suggests that the market is becoming increasingly volatile.
As the cryptocurrency market continues to evolve, it is essential for investors to exercise caution and conduct thorough research before making investment decisions. While the potential for significant returns is enticing, the risks associated with investing in highly volatile assets like meme coins should not be underestimated.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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