Whale Sells $4.54M of PEPE : Is a memecoin crash looming ?
After a meteoric rise in 2024, the memecoin PEPE is now experiencing a significant downturn. Discover the catalyst behind this fall and what it means for the future of this crypto phenomenon. Curious to know more? Keep reading!
A Record Sale : 217 Billion PEPE Tokens Liquidated
According to SpotOnChain, a crypto whale recently liquidated 217 billion PEPE tokens, generating an impressive profit of $767,000 after just 17 days of holding. This sale signifies a strategic move for the investor and raises concerns for the entire memecoin market.
Despite this liquidation, the wallet still holds 1.21 trillion PEPE tokens, equivalent to approximately $25.1 million. This significant position hints at potential future maneuvering for this key player.
The context of this sale is marked by a significant drop in the price of the PEPE cryptocurrency, which has seen a 27.4% decrease in value over the last 30 days. This decline is part of a widespread trend affecting other cryptocurrencies such as:
Crypto analysts are observing a symmetrical triangle pattern in PEPE’s chart, indicative of a consolidation phase. This formation reflects a period of market indecision where buyers and sellers are trying to establish a new balance.
Here are the potential scenarios:
If the price breaks below the lower trendline, a decline to levels from last December is likely.
Conversely, a bullish breakout could propel the token towards the key resistance at $0.000022.
The technical indicators also provide mixed outlooks:
The MACD issued a buy signal on January 3rd.
The RSI remains neutral, urging caution among investors.
Memecoins : A trend under pressure
Beyond PEPE, the memecoin sector is experiencing strain. Over the past month, $35 billion in market capitalization has vanished from this segment, reflecting increasing investor disinterest. This trend is influenced by various factors, including:
portfolio rebalancing,
sectoral rotation.
A potential recovery may occur if low prices attract new entrants. Nevertheless, the current volatility demands careful management.
Despite this turbulent period, the PEPE phenomenon shows no signs of slowing down. Meanwhile, the highly anticipated launch of the Wall Street Pepe (WEPE) project continues to garner investor enthusiasm, hinting at new opportunities for memecoin enthusiasts.
⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.
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Léa is part of the InvestX team which supports members in their training. She is also a crypto enthusiast who follows the market closely. For the InvestX.fr site, she writes articles to help readers decipher the news and what happens day after day in the world of blockchains.
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