"PEPE's $7B Plunge: Whale Exit Sparks Market Uncertainty"
1min read PEPE, a popular memecoin, has recently experienced a significant market cap decline of nearly $7 billion, raising concerns about its long-term sustainability. The coin's valuation has plummeted from $12 billion a few months ago to its current $5.24 billion, reflecting reduced investor confidence.
A major PEPE whale has exited its position, selling 552.92B PEPE for $6.92M USD Coin (USDC), adding to growing market uncertainty. The whale had previously traded 1.48T PEPE, securing a $3.42M profit. Such large liquidations often trigger volatility and bearish sentiment. At press time, PEPE traded at $0.00001274, down 1.07% on the day, struggling to hold key support levels.
On-chain data reveals weakening fundamentals, with net network growth at 1.69% (bearish) and the "In the Money" metric at -3.43% (bearish). Whale concentration remains low at 0.71% (bearish), showing declining accumulation. However, large transactions have increased by 2.50% (bullish), hinting at continued institutional activity despite the price downturn.
The MVRV long/short difference has dropped to 10.45%, marking one of its lowest points in months. This decline suggests that traders are unwilling to hold PEPE for extended periods, increasing short-term selling risks. Continued declines in profitability may lead to more liquidation events. However, if MVRV stabilizes, it could indicate a potential price reversal in the near term.
Pepe's price action remains bearish, with a breakdown below a descending wedge pattern intensifying selling pressure. The loss of the $0.00001687 demand zone further weakens its structure. The Williams Alligator indicator confirms a bearish crossover, with moving averages trending downward. However, the RSI sits at 34.32, suggesting oversold conditions that could trigger a short-term bounce.
Despite the bearish outlook, some traders believe the current price range presents a prime accumulation opportunity ahead of the next altcoin and memecoin rally. If buyers step in and defend current levels, a temporary recovery may occur. Otherwise, further downside is expected 
