PEPE Whales Exit Positions Realizing $3.5 Million Loss

PEPE, a popular meme coin, is currently experiencing significant movements as whales exit their positions. A major PEPE whale exited a 2.2 trillion token position over the past ten days, realizing a $3.5 million loss. The exit followed a gradual return of tokens that began on June 8. The whale had acquired the full position in mid-May at a total value of $27.64 million. By the time of exit, the return of tokens was valued at $24.1 million, representing a $3.5 million realized loss. This full-scale offload signals reduced whale confidence and puts pressure on short-term PEPE prices. Market participants now monitor similar large wallets to see if more exits follow.

Despite bearish on-chain signals, the PEPE/USDT daily chart on Binance formed a bullish flag pattern on June 18. This pattern typically signals a continuation of a prior uptrend after a period of consolidation. PEPE surged in early May, followed by a pullback within a downward-sloping channel. If the token breaks out above the upper trendline, it could resume its upward trend. The projected target sits near $0.00002051, which would be a 102% increase from the current price of $0.00001010. The 50-day EMA at $0.00001137 stands as the first resistance level. If PEPE surpasses this, it could confirm bullish momentum. Trading volume remains high, suggesting liquidity exists for a breakout.

The RSI indicator of the PEPE/USDT 1-day chart is 37.65. This reads the slackening of momentum and brings it close to the oversold areas, which commence at 30. The signal line is recorded at 45.03 and is still above the RSI indicating bearish divergence. PEPE is largely oversold, and a fall to the RSI of 30 could see the coin turn around. Generally, the indicators are both on-chain and technical ones, and they are divergent. The traders are monitoring either a breakout confirmation or a further weakness continuation.

In summary, while PEPE has formed bullish patterns such as the bullish flag, the weak RSI values, along with the exit of whales, indicate potential weakness in the market. Investors should approach PEPE with caution, considering the mixed signals and the possibility of further downside. The exit of whales from PEPE positions, coupled with the liquidation of significant funds, adds to the bearish sentiment. Whales are large investors who often influence market movements, and their exit can signal a potential downturn. The weak RSI values further support this bearish outlook, suggesting that the current bullish patterns may not be sustainable.