- Buying pressure on the meme coin continued to remain high.
- Market indicators suggested that PEPE might witness a price correction.
Pepe [PEPE], one of the most famous meme coins, has displayed promising performance over the last week. While the meme coin’s price surged, a whale actually sold a substantial number of tokens, earning profits.
Does this mean that the whale is expecting PEPE to witness a price correction in the near term?
Are PEPE whales selling?
Over the last week, PEPE registered double-digit growth, which looked promising. To be precise, the meme coin managed to lift its value by more than 33%.
In fact, it also maintained its gains in the last 24 hours, as it was up by over 9%. At the time of writing, the coin was trading at $0.000001418 with a market capitalization of over $592 million, making it the 89th largest crypto.
While the coin’s value continued to pump, a whale chose to sell its holdings.
According to a recent tweet from Lookonchain, a whale deposited 794 billion PEPE, which was worth $1.1 million to Gateio, when the price of the token surged. This sale allowed the whale to earn a profit of $230,000.
The price of $PEPE just soared more than 20%.
We noticed that a wallet deposited 794B $PEPE ($1.1M) to #Gateio when the price of $PEPE skyrocketed, making ~$230K.
Subsequently, the price of $PEPE began to fall from the peak.https://t.co/MBLnOSNlSE pic.twitter.com/cLTtCyMpGJ
— Lookonchain (@lookonchain) December 4, 2023
Does this mean that the whale was anticipating a price drop? But when AMBCrypto checked Santiment’s data, we found that whale activity around the meme coin was high.
In fact, they were actually increasing their holdings, which was evident from the fact that PEPE’s supply held by top addresses increased last week. Not only that, but retail investors at large were also accumulating.
PEPE’s supply on exchanges dropped sharply while its supply outside of exchanges increased, meaning that buying pressure on the token was high. Its exchange outflow also spiked, further proving the fact that investors were buying.
Source: Santiment
What to expect from PEPE
Since investors are still buying PEPE, AMBCrypto then checked PEPE’s daily chart to better understand what to expect from it over the days to follow.
Realistic or not, here’s PEPE’s market cap in BTC terms
The MACD remained bullish as it displayed a bullish crossover; however, the meme coin’s price touched the upper limit of the Bollinger Bands, which can cause a price correction.
Additionally, both its Relative Strength Index (RSI) and Money Flow Index (MFI) were near the overbought zone. This increased the chances of an increase in selling pressure, which can push the coin’s price down.
Source: TradingView
