PEPE Coin Whales Slash Trading as Meme Coin Records 26% Crushing Loss

The meme coin market has been turbulent recently, and PEPE coin whales are now at the center of attention. PEPE, the frog-themed meme coin that once surged with momentum, is now grappling with significant losses. The impact of this downturn has become particularly evident as large PEPE coin whales begin to retreat, drastically reducing their trading activities.

PEPE Coin Whales in Retreat

PEPE coin whales, who once played a critical role in the coin’s market dynamics, are now significantly scaling back their activities. As PEPE’s price continues its downward spiral, trading volume has seen a sharp decline. From its monthly peak of $0.0000096 on August 24, PEPE has since dropped to $0.0000071, reflecting a 26% loss over the past two weeks.

The decline has not only impacted the broader market but has also led to a significant reduction in the daily count of large transactions involving PEPE. These transactions, typically ranging between $100,000 and $10 million, have decreased by as much as 90% over the past month. Data from IntoTheBlock indicates that this drastic reduction is a clear sign that PEPE coin whales are losing confidence, which could foreshadow further downward pressure on the coin’s price.

The primary reason PEPE coin whales are reducing their exposure lies in the sustained losses that PEPE has faced. Over the past month, PEPE’s daily transaction volume ratio of profit to loss has remained below one, currently sitting at 0.62. This means that for every transaction ending in profit, there are more than 1.6 transactions ending in loss.

This unfavorable ratio has prompted many PEPE coin whales to offload their holdings. Large holders, who control more than 0.1% of the asset’s circulating supply, have significantly decreased their positions. This behavior is reflected in the netflow of PEPE coins, which tracks the difference between the amount of coins acquired and those moved out. Over the past month, the netflow has dropped by 90%, indicating substantial offloading by these large holders.

Crypto analyst Tom Jenkins, a seasoned observer of the meme coin market, stated, “The rapid decline in large transactions and netflow is a clear indicator that PEPE coin whales are increasingly wary of the coin’s future prospects. This retreat by whales could trigger a broader market sell-off, putting further pressure on PEPE’s already fragile price.”

The technical outlook for PEPE is far from optimistic. On the one-day chart, the Moving Average Convergence Divergence (MACD) indicator recently flashed a bearish signal, with the MACD line crossing below the signal line. This crossover typically indicates weakening momentum and suggests that the downtrend could continue.

If the current trend persists, PEPE’s price could fall to the lower boundary of its falling wedge pattern at $0.0000062. Should the bears maintain control and break this support level, the price could dip even further to $0.0000059, a level that might trigger panic among remaining holders.

However, there is a potential silver lining. If demand surges, perhaps spurred by renewed interest in the meme coin market or a broader crypto market rally, PEPE could see a reversal. In such a scenario, the price could  push PEPE’s value up to $0.0000086. But for this to happen, significant buying pressure would need to emerge, something that seems unlikely given the current sentiment among PEPE coin whales.

PEPE Coin Whales: A Reflection of Broader Trends

The behavior of PEPE coin whales is not just a reflection of PEPE’s struggles but also indicative of broader trends in the meme coin market. The volatility that characterizes meme coins, combined with their speculative nature, makes them particularly vulnerable to rapid price swings. When large holders, like PEPE coin whales, begin to exit, it often signals a shift in market sentiment that could have lasting effects.

Crypto market strategist, Emily Davis, noted, “Whales often have access to better information and resources, allowing them to act on market signals before retail investors. The recent exit of PEPE coin whales should be seen as a warning sign. The broader market may follow, leading to a continued decline in meme coin valuations.”

As PEPE coin whales continue to retreat, the meme coin faces a critical juncture. The sharp decline in large transactions, combined with bearish technical indicators, suggests that the road ahead for PEPE is fraught with challenges. Unless a significant shift in market sentiment occurs, PEPE could see further declines, driven by ongoing sell-offs from large holders.

For those invested in PEPE, the coming weeks will be crucial. Monitoring the behavior of PEPE coin whales will provide key insights into the coin’s potential trajectory. Should these whales continue to offload their holdings, it may signal that the worst is yet to come for PEPE.

However, the crypto market is known for its unpredictability. While the current outlook is bleak, a sudden surge in demand could alter PEPE’s fortunes. But until such a change materializes, PEPE coin whales’ actions will likely continue to influence the coin’s price, casting a long shadow over its future. Get more from The Bit Gazette