Whale's $1.86M PEPE Sell-Off Sparks Price Concerns
2min read A significant event in the cryptocurrency market occurred as a large holder, or "whale," of the memecoin PEPE sold off a substantial portion of their holdings. The whale, identified by the wallet address '0x373…', exchanged 196.1 billion PEPE tokens for 720.6 WETH, which was then used to purchase 397,192 PENDLE tokens at an average price of $3.08 each. This transaction, valued at $1.3 million, raised concerns about the potential impact on PEPE's price stability.
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Over the course of three days, the whale continued to sell PEPE tokens, offloading a total of 261.2 billion PEPE for 1,060 WETH. The 1,060 WETH, valued at $1.86 million, was then used to acquire 607,863 PENDLE tokens at an average price of $3.066. Despite these sales, the whale retained a significant holding of 2.597 trillion PEPE tokens, worth $17.53 million, with unrealized earnings of $28.41 million—a remarkable 5.25x return on investment.
The whale's actions sparked concerns about a potential crash in PEPE's price, as the large-scale sell-off could influence market sentiment. However, the whale's shift from investing in memecoins to DeFi fundamentals, as indicated by the purchase of PENDLE tokens, suggested a strategic move rather than a panic sell-off. This distribution pattern indicated uncertainty whether retail consumers could adopt a more lasting investment trend or a temporary buying approach.
Despite the sell-off, PEPE showed signs of a potential bullish reversal. The price rebounded from a key support range between $0.000000500 and $0.000000700, with intense buying activity observed at this price point. A potential bullish recovery emerged in the green mid-zone, ranging from $0.00000070 to $0.000000800, as the daily RSI hovered near the lower boundary close to 50. Historically, significant rallies followed when the daily RSI climbed above 50 after dropping to the oversold area near 30. However, rejections of the RSI around the 50 level repeatedly triggered downward price movements.
A breakthrough above the 50 level on the RSI could cause an intense price movement toward the following resistance zone at $0.00000120. Failure to maintain above $0.00000080 as support would potentially result in a testing of the lower support levels. PEPE could return to trade at $0.00000040 if the price level dropped below $0.00000060 for a second time. However, a breakout above $0.0000010 could spark a reversal, but failure to flip the zone would typically lead to trapping of new buyers who countered a bear market.
Despite the whale's sell-off, recent months saw rising retail investor interest in PEPE, with its adoption reaching the 560 new holders mark. PEPE also maintained its position among the top 10 cryptocurrencies in terms of daily trading volume. This way, PEPE maintained an elite position regarding the 24-hour Volume-to-Market Cap Ratio, which placed it at one of the leading positions among the top 100 cryptocurrencies. Positive trends suggested that there could be potential stability in rising if this becomes a momentum-seeking trend. However, any new buyer, unable to continue in the book, could once again destabilize or even lead the market further to a price slide.
