• Two PEPE whales have potentially sold nearly 1 trillion PEPE in the past 24 hours.
  • On-chain data shows PEPE long-term holders, taking profits since March, are more sensitive to price dips.
  • PEPE could experience a massive correction following the formation of a daily head-and-shoulders pattern.

PEPE is down nearly 2% on Wednesday following key insights that long-term holders have been consistently booking profits since March. The move appears to be creating a head-and-shoulder pattern on the daily chart for PEPE, which can trigger a heavy correction.

PEPE’s on-chain metrics and price action indicate potential decline

Some PEPE whales have been dumping their holdings in the past 24 hours, according to Lookonchain's data. A whale who spent $3.13 million to buy 420B PEPE during the market crash on August 5 and August 12 potentially sold all of its holdings for a profit of only $30K.

Following the move, another whale who spent $8.34 million to accumulate 750.38B PEPE transferred 500B PEPE worth $4 million to the Kraken exchange, potentially realizing a loss of $2.3 million. The whale still holds 250.33B PEPE worth $2.02 million at the time of writing.

The recent dump may not be peculiar to these whales alone as the exchange inflows of PEPE saw a spike above 1.44 trillion PEPE tokens as of 12:00 GMT on Wednesday, according to Santiment's data.

PEPE holders have potentially been shedding their holdings whenever the meme coin sees a spike or a dip. The 365-day Dormant Circulation, which tracks coins that were last moved in the past year, has seen spikes, especially when PEPE attempts to dip after recording a new high.

PEPE Dormant Circulation (180day & 365day)

PEPE Dormant Circulation (180day & 365day)

This suggests that this cohort may now be more sensitive to price dips than a rally, especially after the 180-day holders shed a portion of their holdings during the market rally in March before graduating to the 365-day Dormant Circulation category.

Such behavior suggests that holders of old coins have feeble hands and may dump during key price movements.

The 180-day to 365-day Realized Cap HODL Waves suggest PEPE long-term holders (LTH) may have been consistently taking profits since March. A decline in this metric suggests old coins are being spent or sold, and vice versa when the metric Increases. As the chart below reveals, PEPE LTHs have consistently shed their holdings.

PEPE Realized Cap HODL Waves (180d to 365d)

PEPE Realized Cap HODL Waves (180d to 365d)

On the technical side, PEPE seems to be forming a head and shoulder pattern on the daily chart. If PEPE breaches the neckline around $0.00000760 and falls further below the left shoulder's low at $0.00000570, it could face a massive correction.

PEPE/USDT Daily chart

PEPE/USDT Daily chart

A daily candlestick close above $0.00001405 will invalidate the bearish thesis.

Additionally, this analysis is subject to Bitcoin's price movement as top meme coins often mimic its price.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Crypto traders gear for President Trump’s plan to tackle inflation, Bitcoin eyes rally above $100,000

Crypto traders gear for President Trump’s plan to tackle inflation, Bitcoin eyes rally above $100,000

Bitcoin corrects below the $100,000 milestone on Monday, slipping nearly 10% from its all-time high of $109,558 reached on January 20. The largest cryptocurrency by market capitalization has declined to a low of $97,777, even as institutional investors remain bullish on Bitcoin. 

More Bitcoin News
Pepe Price Forecast: PEPE eyes for 20% crash

Pepe Price Forecast: PEPE eyes for 20% crash

Pepe continues its decline, trading around $0.000012 and dipping nearly 10% at the time of writing on Monday after correcting more than 12% the previous week. PEPE’s long-to-short ratio trades below one, indicating more traders are betting on the frog-based meme coin to fall.

More Pepe News
Dog-based meme coins DOGE and SHIB dip as bearish bets increase among traders

Dog-based meme coins DOGE and SHIB dip as bearish bets increase among traders

Dogecoin and Shiba Inu prices continue to decline on Monday after correcting more than 6% in the previous week. DOGE and SHIB long-to-short ratio trades are below one, indicating more traders are betting for dog-based meme coins to fall.

More Cryptocurrencies News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP momentum indicators hint at correction

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP momentum indicators hint at correction

Bitcoin (BTC) and Ethereum (ETH) are approaching their crucial support levels on Monday; a firm close below would lead to a correction. Ripple (XRP) price follows BTC and ETH as it nears its ascending trendline; a close below would lead to a pullback ahead.

More Cryptocurrencies News
Bitcoin: BTC holdings of large investors surges as Trump takes the Oval Office

Bitcoin: BTC holdings of large investors surges as Trump takes the Oval Office

Bitcoin (BTC) trades in the green and hovers above $105,000 on Friday after hitting a new all-time high of $109,588 on Monday. CryptoQuant’s weekly report highlights that the demand for BTC from large investors surges as US President Donald Trump takes the Oval Office.

Read full analysis
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

BTC

ETH

XRP