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Pepe (PEPE) has been on an impressive upward trajectory, rising by 13.07%. This surge has provided significant profits for long-term holders, particularly whales, who have taken the opportunity to capitalize on the gains. One such whale sold a massive 217 billion Pepe tokens, worth approximately $4.54 million, through Kraken. After the sale, the whale secured a tidy profit of $767,000 while still holding onto 1.21 trillion Pepe tokens, valued at $25.1 million across two wallets.
A smart whale deposited 217B $PEPE ($4.54M) to #Kraken 5 hours ago, likely securing a $767K profit (+20%) again in just 17 days.
— Spot On Chain (@spotonchain) January 7, 2025
The whale still holds 1.21T $PEPE ($25.1M) across 2 wallets, with another $4.05M in unrealized gains!
Notably, earlier in 2024, this whale had made… pic.twitter.com/kQ8BCLfgN7
Typically, when whales start offloading their holdings, it’s a signal of profit-taking or an attempt to avoid potential losses. While this large sale initially raised eyebrows, it is only part of the broader market sentiment surrounding Pepe. The increased selling activity has had an immediate effect on the memecoin’s price, which has declined by 1.51% to $0.00002049 at the time of writing.
However, this drop isn’t solely due to whale activity. The broader market sentiment remains bearish, evidenced by several key indicators. The Directional Movement Index (DMI) recently recorded a bearish crossover, signaling strengthening downward momentum. In addition, the Advance-Decline Ratio (ADR) has fallen below 1, indicating that losses are outpacing gains. This is further supported by Pepe’s negative weighted sentiment, showing that more market participants are bearish than bullish.
Adding to the bearish outlook, short traders now dominate the market, with 55% of total accounts holding short positions. This suggests that traders expect further price declines. Furthermore, Pepe’s stock-to-flow ratio has dropped to zero, pointing to an oversupply in the market, which could place additional downward pressure on prices.
Despite recent gains, Pepe is still facing significant market challenges. With the bears in control, the memecoin may test lower levels around $0.000019, unless a shift in market sentiment leads to a reversal.
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.
Also Read: Pepe Coin Price Rebound Faces Threat: Top Holders Exit and Bearish Signals Emerge
