Memecoin Investors Face Exits, Suggesting Decreasing Faith in PEPE
Taking a Deep Dive into PEPE's Rollercoaster Ride
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Two whales parted ways with their PEPE, cashing out a staggering $7M, leaving the memecoin in murky waters.
Whale Exits and Falling Prices
The recent departures of hefty PEPE holders, offloading a combined 600B tokens, resulted in a $12M liquidation, each at a loss of approximately $3.5M. This exodus came shortly after a failed attempt at recovering losses, indicating a growing sense of caution among large investors.
A Broken Nightmare: Yes, That’s Right, a Cup-and-Handle Pattern Gone Wrong
PEPE’s price trajectory eerily mirrored a classic Cup-and-Handle pattern, a bullish indication. However, things soon spiraled out of control, as PEPE failed to break through the key resistance above $0.00001200 and found itself trapped within a descending channel instead.
Despite this gloomy situation, coin bulls stoically defended the $0.00001014 line, hinting at a possible short-term bounce. But to confirm a continuous bullish trend and disregard any impending bearish pressure, the price must surge above $0.00001280.
What Does the Stochastic RSI Even Mean? Let Us Illuminate You
With the Stochastic RSI sliding into the overbought zone, a short-term price rebound seems inevitable. But is it enough to steer PEPE towards a sustainable recovery?
Ride the Red Sea of Investor Apathy
A closer look at the network reveals a drying up of investor interest, with metrics pointing to a bearish landscape.
- Net network growth resting at an anemic 0.70%
- "In the Money" wallets plummeting by a daunting 7.07%, signaling that many holders are underwater
- Large transaction volumes weakening by 5.18%, suggesting a lackluster active player base
- Stunted accumulation by top wallets, as concentration levels remained stagnant
But it's not just the data; the general sentiment has dampened both from the retail and institutional sectors.
NVT: The Silent Siren of Crypto Investing
With a sharp spike in the NVT ratio (Network Value to Transactions Ratio), it seems that the value of the network far surpasses the actual on-chain activity, often warning of overvaluation and eventual price correction.
MVRV Z-Score: The Unseen Whale
As the MVRV Z-score (Market Value to Realized Value) takes a nosedive to -0.29, it means, on average, PEPE holders are losing their shirts. While this could signify undervalued assets, it is more likely an indication of diminished holder confidence, exacerbated by bearish on-chain data and failed technical breakouts.
So, What’s the Verdict?
While PEPE flashes signs of oversold conditions and a possible bounce, broader indicators suggest a continuing downward momentum. In other words, until bulls reclaim the $0.00001280 levels and regain investor participation, any recovery could prove short-lived and morph into further pain.
[1] - CryptoScoop, “11.75 trillion PEPE tokens moved in late May 2025: DEX vs CEX-related wallets,” Last accessed on March 6, 2023
[2] - Cointelegraph, “PEPE price analysis: May 31," Last accessed on March 6, 2023
[3] - The Block, “PEPE, the latest memecoin to benefit from Elon Musk's endorsement, surges 475% in 24 hours,” Last accessed on March 6, 2023
[4] - IntoTheBlock, “PEPE [PEPE]” Last accessed on March 6, 2023
[5] - Newcryptoinsights, “PEPE crypto price analysis: May 31,” Last accessed on March 6, 2023
- The selling action by two significant PEPE holders, accounting for a massive 600B tokens, has resulted in a substantial on-chain data transfer and a tumultuous $12M liquidation, which coincides with a downturn in the crypto market.
- Investors using wallets, both large and small, have started to reconsider their placement in PEPE, as metrics like net network growth, "In the Money" wallets, transaction volumes, and top wallet accumulation have all dropped dangerously low, painting a bleak picture for potential investors.
- The MVRV Z-score, an essential analysis tool for crypto investors, indicates that PEPE holders are experiencing a substantial loss, lurking beneath the surface of the bearish on-chain data and failed technical breakouts, urging caution for those considering investing in this crypto asset.
