Pepe Meme Coin Drops as Whales Sell 502.5 Billion Tokens

Pepe, a prominent meme coin, has been experiencing significant shifts in the market. Whales, or large holders, have been actively selling their PEPE holdings, indicating a potential downturn. One notable wallet sold off 502.5 billion PEPE, securing a substantial profit after just one month. This move came as the token broke out of a bullish setup, shifting market expectations from growth to caution. The sell-off by whales has led to a decrease in trading volume, while major wallet activity has been on the rise. On-chain statistics show a 4.09% increase in large transactions, suggesting further strategic exits. Key liquidation points between certain levels indicate that the meme coin market is tense, and unless sentiment changes quickly, more declines may be on the way.

Pepe's decline has been influenced by broader market conditions, including profit-taking and geopolitical issues. The supply held by whales has dropped significantly, falling to the lowest point since November of the previous year. The Network Realized Profit/Loss metric has plunged into the negative zone, indicating that some sellers are exiting at a loss. Additionally, active addresses have slumped to less than 3,000, further highlighting the reduced interest and activity in the PEPE market. Despite these challenges, the MVRV ratio with the Z score has dropped to a negative value, suggesting that PEPE may be in a buy zone. This could potentially attract investors looking to buy the dip, as the market value has moved below the average price at which holders acquired their coins.

Technical analysis of Pepe's daily chart shows that the token price has decreased from last month’s high to its current level, consolidating at key moving averages. The price has moved above the 23.6% Fibonacci Retracement level and has formed a cup-and-handle pattern. If this pattern holds, the coin could potentially bounce back and retest its all-time high, which is significantly above the current level. This view will be confirmed if the price rises above the upper side of the cup pattern. The recent dip is likely part of the formation of the handle section of the cup-and-handle pattern, indicating a potential reversal in the near future.