Whale Sell-Offs Drive 41% Decline in Pepe Token Supply

Pepe, a prominent meme coin, is currently facing a critical juncture as whale sell-offs intensify. The selling pressure from whales has been significant, with 41 trillion tokens offloaded over the past three months. This has led to a decline in the supply of Pepe tokens held by these investors, dropping from a peak of 165 trillion in February to 148.7 trillion. The economic uncertainty stemming from the ongoing US-China trade war has fueled profit-taking as whales seek to limit their downside exposure.

Despite the sell-offs, there are signs that the selling pressure may be easing. The supply held by whales has remained steady over the past week, and the 90-day Mean Dollar Invested Age (MDIA) has been in a downtrend, indicating increased selling from long-term holders. However, the sentiment around Pepe is shifting, with major technical developments on the daily time frames suggesting a potential rebound.

Pepe's recent rebound marked the second bounce in a double-bottom pattern forming along a support zone that has marked major bottoms since mid-2024. While the first stage of gains has materialized, a full breakout would require a decisive break above the $0.00000855 resistance. If Pepe cannot hold its position above this level, it risks a sharp reversal back toward the support zone and its year-to-date low, which could result in a 41% decline.

Momentum indicators lean bullish, with the MACD line holding above the signal line and the RSI trending sideways above neutral. However, the setup remains fragile, and Pepe is vulnerable to broader market headwinds, particularly amid economic uncertainty. The current slip hasn't triggered a full trend reversal just yet, but the situation is delicate.

Whales have been actively accumulating Pepe tokens, with a staggering 9 trillion tokens bought in the past 24 hours. One whale, holding $147 million in assets, withdrew 1.5 trillion tokens valued at $13.3 million. This aggressive purchase adds to a growing wave of whale activity, suggesting that large holders are positioning themselves for a price breakout. Retail traders are also playing their part by consistently removing Pepe from exchanges, adding to the bullish pressure.

On-chain data from IntoTheBlock shows that whales have dramatically increased their holdings of Pepe in the past 24 hours, buying 9 trillion tokens, nearly triple the 3.25 trillion scooped up the day before. This level of whale activity typically reflects high conviction, and their moves often lead the market rather than follow it. Retail sentiment aligns with whales, with Pepe's Spot Netflow remaining negative over the last five days, indicating that more tokens are being sent out of exchanges than into them, usually interpreted as users holding for the long term.

Despite the behind-the-scenes movement, Pepe has been stuck in a tight price range between $0.0000085 and $0.0000092. After a short-lived rally to $0.0000098 four days ago, the token pulled back and has since lacked the push to break higher. However, this consolidation might be the prelude to a rally. The current volume patterns, backed by strong whale activity and minimal exchange inflow, hint that a breakout could be near. If the memecoin crosses $0.0000098 with strong buying volume, a push to the psychological $0.000010 level is possible. On the flip side, if buyers cannot outpace sellers soon, prolonged sideways trading could test support at $0.0000084, a level where whales may again step in more aggressively.

There’s no denying that Pepe is showing signs of life again. With whales making bold moves and retail participants showing conviction through off-exchange storage, the fundamentals for a memecoin breakout are lining up well. Still, memecoins are unpredictable by nature. The momentum can swing fast, either igniting a powerful surge or fizzling into consolidation. But when this level of coordinated accumulation is happening, it’s often a sign that insiders see something the charts don’t yet reflect. Whether Pepe breaks above $0.00001 soon or not, one thing is clear: the market is watching closely. And if history is any indicator, Pepe tends to make its biggest moves right after whale-led accumulation.