Whales Dump PEPE as Bulls Defy Downtrend, Predict All-Time High

A major PEPE token whale executed a "surrender-style" sell-off this week, liquidating a $46 million position accumulated since June 2024, according to on-chain analytics firm Lookonchain. The address 0x2f3 moved its final $3.7 million holdings to Coinbase for conversion, marking the culmination of a strategic exit that reflects broader market pressures on the memecoin. PEPE has plummeted 31% year-to-date, with trading volume surging to $927 million in the past 24 hours as bearish technical indicators intensify, CoinDesk reported.

The liquidation follows a week of aggressive whale-driven selling, with institutional holders offloading 0.5% of their combined PEPE holdings. This aligns with a broader trend of memecoin sector weakness, as the CoinDesk Memecoin Index fell 23.4% in the same period, CoinDesk reported. Despite the selloff, some long-term holders remain bullish. A prominent X user known as "Pepe Whale" has predicted a new all-time high for the token this month, though such optimism contrasts with the recent exodus of capital.

The move highlights growing institutional caution in the memecoin space. Just days earlier, a different whale-known for a $36 million profit from PEPE trades-shifted focus to ASTER, accumulating $8.14 million worth of the token at an average price of $0.97, Cryptotimes reported. This cross-chain activity underscores the volatile nature of meme-based assets, where large holders frequently pivot strategies amid rapid price swings.

Market participants are also watching regulatory developments that could further impact sentiment. Coinbase, the exchange receiving the PEPE whale's final transfer, announced plans to reincorporate in Texas, citing frustration with Delaware's "unpredictable" corporate court system, Crypto.news reported. The decision, approved by shareholders, adds to a wave of tech companies seeking legal refuge in states offering more business-friendly frameworks.

Technical analysts warn that PEPE's recent 5% single-day drop-and 24% weekly decline-could presage further losses. CoinDesk Research notes that the token's price action forms a "bearish continuation pattern," with key support levels now vulnerable, CoinDesk reported. Derivatives data exacerbates concerns: open interest in PEPE futures has contracted by 18% over two weeks, suggesting reduced speculative positioning.

The liquidation comes amid broader crypto market fragility. Bitcoin fell 1.9% to $101,259 on Wednesday, while the 10-year Treasury yield dipped to 4.06% as investors sought safe-haven assets, Yahoo Finance reported. Yet some see opportunity in the chaos. A top PEPE whale told CoinMarketCap that "volatility creates buying opportunities for those with long-term conviction," even as they complete their own exits, CoinDesk reported.