Massive Profit-Taking by Pepe Coin Whales Signals Potential Meme Coin Selloff
Pepe Coin (PEPE) experienced a significant price surge of 75% within a 24-hour window, spurred by its listings on Coinbase and Robinhood. However, on-chain analytics indicate that whale accounts are now poised to realize profits, potentially triggering a broader selloff across the meme coin sector. Notably, a prominent PEPE whale offloaded approximately 500 billion tokens, realizing nearly $45 million in profits.
Whale Activity and Profit Realization
Recent reports from Lookonchain indicate that early investors and whales of PEPE have begun to liquidate their holdings. One notable transaction involved the sale of 500 billion PEPE tokens, valued at around $11.8 million. This whale had amassed a staggering 2.01 trillion PEPE tokens from May 5 to September 10 of the previous year, with an initial investment of 1,170 ETH, approximately $2.12 million at that time.
Despite this recent selloff, the whale continues to hold an impressive 1.48 trillion PEPE tokens, worth roughly $33.2 million. This indicates that the investor has achieved a remarkable 20x return on their initial investment, with an estimated total profit of $45 million.
Following the high-profile listings on Coinbase, Robinhood, and Upbit, PEPE reached an all-time high, contributing to a market capitalization exceeding $10 billion. Correspondingly, daily trading volumes surged by 200%, surpassing $20 billion amidst this hype.
According to Coinglass data, open interest in PEPE has escalated by 63% to $316 million, while 24-hour liquidations have soared to $48 million.
Market Sentiment and Potential Selloff Indicators
The meme coin market has been buoyant following former President Donald Trump’s recent electoral success, with notable gains in leading meme coins such as Dogecoin (DOGE) and Pepe Coin (PEPE), both registering over 100% increases within the last week. Additionally, lesser-known coins like dogwifhat (WIF), Bonk (BONK), and Floki Inu (FLOKI) have also seen 60-70% price increases amid the meme coin rally.
However, current market conditions exhibit historically high levels of speculative sentiment, characterized by rampant greed and fear of missing out (FOMO), as evidenced by Santiment’s on-chain indicators. Increased social chatter surrounding meme coins further suggests potential headwinds for sustained price growth and caution around incoming selloffs.
Expert Stance
Economist Alex Kruger commented on the prevailing trend within the cryptocurrency space: “Aside from Bitcoin, the narrative revolves around meme coins. This is where the majority of interest lies, and exchanges are readily accommodating that demand, as seen with Binance’s listings of PNUT and ACT, and Coinbase’s offerings of PEPE and WIF.”
In addition to the hype surrounding Pepe Coin, the price of PNUT has surged by 200%, extending its weekly gains to over 1600%. As of the latest updates, DOGE is trading at approximately $0.392, while WIF stands at around $4.18, continuing to capitalize on the prevailing bullish sentiment in the market.
Read Also: XRP Price Target Set for $8: Analyzing 2017-esque Technical Patterns
Follow us on Twitter, Facebook, Telegram, and Google News
Meet Daniel Abang: Crypto guru, content creator, and analyst. With a deep understanding of blockchain, he simplifies complex concepts, guiding audiences through the ever-changing crypto landscape. Trusted for his insightful analysis, Daniel is the go-to source for staying informed and empowered in the world of cryptocurrency.
