On August 30, 2024, a dramatic shift rocked the PEPE token market. A major whale offloaded a colossal 330 billion PEPE tokens—worth an astounding $2.53 million—on Kraken, incurring a hefty loss of over $3.13 million in the process. This move has sent shockwaves through the community, prompting questions about whether this sell-off was a strategic attempt to crash the market or simply a significant financial misstep.
A Whale’s Dilemma – Intentions and Holdings
Despite the recent fire sale, the whale still controls a massive stash of 1 trillion PEPE tokens, valued at approximately $7.57 million. This hefty sell-off follows a notable purchase on August 18, 2024, when the same whale acquired 828.64 billion PEPE tokens for $6.18 million. The sharp decline and subsequent sell-off have fueled speculation about the whale’s future intentions and the overall market sentiment.
Technical Analysis – PEPE’s Struggle at Key Support Levels
Currently, PEPE is testing a critical support level at $0.000007. Trading below the 200 Exponential Moving Average (EMA) on the daily chart, PEPE is signaling a bearish trend. The Relative Strength Index (RSI), however, is in the oversold territory, hinting at a potential for price recovery. Historically, PEPE has demonstrated resilience, with forecasts indicating a potential 22% rise to $0.00000938. Yet, if PEPE fails to maintain the support level and closes below $0.00000672, it may face a further decline to $0.000006.
Also Read: PEPE Coin Whale Sells $2.53M At A Loss – $3M Down In Volatile Market As Crypto Community Reacts
On-Chain Metrics – Bearish Sentiment and Market Trends
Recent data from Coinglass reveals that short sellers are dominant, with the PEPE Open Interest (OI)-weighted funding rate at a bearish -0.0030%. This suggests that the downward pressure may persist. Despite a slight 0.6% decline in the token’s value over the past 24 hours, PEPE’s open interest has increased by 6%, reflecting ongoing trader interest amid the selling pressure.
The recent whale activity has added a layer of uncertainty to the PEPE market. While the massive sell-off might indicate a bearish outlook, the technical indicators and rising open interest suggest that the token could still experience volatility and potential recovery. Investors and traders will need to stay vigilant and analyze market signals closely as PEPE navigates these turbulent waters.
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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