Is PEPE Coin On The Verge Of A Sell-Off?

Prominent crypto whale has drawn a lot of attention after moving 588 billion Pepe coin tokens, about $10.99 million, from its wallet to the Kraken exchange.

According to blockchain data, this wallet, 0xBE2, has acquired these tokens over a seven-month span for $5.2 million.

This brings an unrealized profit of $7.34 million. It is a very good return on investment of 141% at the price of $0.00001849.

However, such a big sell-off has raised suspicion among some that depositing to exchanges signals a desire to liquidate holdings.

This large transfer on top of its very volatile PEPE market is spurring criticism for why, if the price isn’t already being driven by a bubble, this may start to hurt it.

PEPE Coin Price Performance and Market Context

The PEPE token has been on the uptrend with a 6.58% uptick in the past week. Trading at $0.00001836, it has a current 24-hour trading volume of over $1.13 billion.

– Advertisement –

But the token is still a long way from its all-time high, just a month ago.

The total global market cap has climbed to $3.5 trillion as the cryptocurrency market continues to flush with bullishness.

The meme coin segment has also grown significantly, bringing its market cap to a total of $107 billion.

PEPE coin continues to be an active token in this broader market recovery, although there are lingering concerns about the behavior of whales.

Analysts Point to a Potential Price Rally

Crypto analyst Ali Martinez suggests PEPE could see further price rally and has shared an optimistic outlook for the meme coin.

TD Sequential Indicator has now triggered a buy signal on the daily chart, per Martinez.

However, he points out that if the current trend continues, the token may see a rebound, pushing the token’s price to $0.000021.

According to Martinez, there is a double-bottom reversal pattern on the chart, making way for a possible rally to the 38.2% Fibonacci level at $0.00002190.

If that bullish momentum continues, PEPE coin could also test the 61.8% Fibonacci level at $0.00002250.

A critical support level at $0.00001739 has been identified, however, and if selling pressure increases, it comes into play.

Uncertainty Surrounds Whale Activity

While Martinez’s projections mean progress towards a price rally, Kraken’s whale deposit on the exchange brings the question mark.

As these ecosystems feature high speculative interest, there is the potential for large-scale sell-offs to drive rapid price declines.

This whale’s movements are watched carefully by market participants to see if it will cut the sell-off and keep the tokens on the exchange.

This level of uncertainty, combined with the technical outlook for PEPE, plays it a little bit safe for the traders, as it suggests there is room for upward movement.

PEPE coin is possibly riding in the coming days as the market awaits clarity as to what the whale intends and what ripple it will make on the token price trajectory.