Why PEPE might no longer be a whale favorite

Posted: September 7, 2023

• Large PEPE holders sold at a loss, raising doubts about the token’s prospects.
• Despite a drop in social engagement, PEPE’s sentiment remained positive.

Despite the initial hype and frenzy behind PEPE, the overall interest in PEPE fell over the last few days. As the price of PEPE decreased further, many addresses opted to sell their tokens for a loss instead of holding out for potential future profits.

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Whales are not interested

Notably, a significant event occurred when three wallets, presumably belonging to the same person, deposited 1.5 trillion PEPE tokens (equivalent to $1.2 million) into Binance, incurring a loss of $242,000.

These wallets had initially withdrawn the 1.5 trillion tokens (valued at $1.45 million at the time) from OKX following a significant Pepe team sell-off on 24 August. These moves raised questions about the confidence of some large holders in the token’s future.

The impact of such whale activity on the memecoin market is substantial, as it can cause uncertainty and influence other traders’ decisions. When large holders choose to sell at a loss, it can signal a lack of faith in the asset’s potential to recover.

On the social front

A large part of memecoins’ price movements can be attributed to their presence in the social sector. Over the last week, the social activity around PEPE has shown a significant decline. Social mentions for PEPE decreased by 17.9%, and social engagements fell by 28.4%.

However, despite the reduced social activity, the weighted sentiment around the memecoin continued to grow. This suggested that there were more positive comments and sentiments surrounding PEPE than negative ones at the time of writing.

The community might still have faith in the token’s potential, despite the recent challenges it faced.

Source: Santiment

A look at the price

Since 14 August, the price of the memecoin depreciated by a significant 44.5%. During this period, PEPE exhibited multiple lower lows and lower highs, establishing a clear bearish trend. This trend reflected a growing sentiment of pessimism among traders.

At the time of writing, PEPE’s Relative Strength Index (RSI) stood at 47.80, indicating that the momentum of the price was favoring the sellers.

However, the Chaikin Money Flow (CMF) had spiked significantly, showcasing a bullish divergence. This implied that the money flow was favoring the bulls, suggesting a potential shift in market sentiment.

Source: Trading View

Realistic or not, here’s PEPE’s market cap in BTC terms

Furthermore, PEPE’s network growth declined significantly over the last week, implying that new addresses were not showing interest in the memecoin.

Additionally, the velocity at which PEPE was being traded fell significantly. This slowdown in activity could have a lasting impact on PEPE’s future performance in the market, raising concerns about its long-term viability.

Source: Trading View