Pepe [PEPE] Whales Dump 217B Tokens Worth $4.54M via Kraken, Triggering a 1.51% Daily Price Dip

Pepe [PEPE] price analysis reveals a 13.07% increase over the past seven days.

This price surge has enticed investors, especially whales, to cash out their profits.

According to SpotOnChain, one large whale sold 217 billion Pepe tokens for $4.54 million through Kraken, securing a profit of $767,000.

Despite selling these tokens, the whale still holds 1.21 trillion Pepe tokens, valued at $25.1 million, across two wallets.

Typically, when whales begin selling, they are either maximizing profits or attempting to avoid losses.

As expected, the increased selling activity has impacted Pepe’s price negatively.

At the time of writing, Pepe is trading at $0.00002049, indicating a 1.51% decrease on daily charts.

However, it is crucial to note that this decline is not solely attributed to whale activity; the broader market is also experiencing a bearish trend.

To begin with, the bear market is evident from a bearish crossover on the Directional Movement Index (DMI).

The meme coin experienced this crossover 48 hours ago, which signals a strengthening downward momentum.

This downward pressure is further confirmed by a declining Advance-Decline Ratio (ADR), which has dropped below 1.

When the ADR is less than 1, it suggests that the meme coin is experiencing more losses than gains.

Furthermore, the meme coin’s weighted sentiment is negative, indicating that there are more negative sentiments in the market than positive.

Moreover, the majority of investors are taking short positions, which is evident from the fact that short traders are taking 55% of the total accounts.

With short traders dominating the market, it shows that traders are bearish and anticipating prices to drop further.

Finally, Pepe’s stock-to-flow ratio has dropped to zero, indicating an oversupply.

This suggests that the meme coin is currently oversupplied in the market, which could cause downward pressure on its prices.