Exploring the effect of PEPE whales’ exit ahead of Ethereum ETF launch

PEPE Holders Reduce Holdings Amidst Ethereum ETF Launch Expectations

On-chain analysis reveals that large holders of the memecoin PEPE have sold off a significant portion of their holdings in the past 30 days. This may come as a surprise, given the bullish sentiment surrounding the upcoming Spot Ethereum (ETH) ETF launch.

Large Holders Sell Off PEPE

According to IntoTheBlock data, PEPE addresses holding $100,000 to $10 million worth of tokens have seen double-digit declines in their holdings. This indicates that they have been selling off their tokens within the last month.

Memecoin Undervalued?

Despite its status as the top memecoin on Ethereum, PEPE's holders have not shared the bullish sentiment of the broader market. However, the Market Value to Realized Value (MVRV) ratio indicates that the memecoin may be undervalued relative to its current market conditions.

Impact on Price

If the selling trend continues post-Ethereum ETF launch, PEPE's price may hike. However, sustaining the hike will require increased buying pressure. If distribution continues, the token could decline further from its all-time highs.

Analyst Predictions

Some analysts believe that PEPE could benefit from the Ethereum ETF launch. According to Donny Dicey, an analyst on X, the hype surrounding the event could drive a surge in memecoin prices. However, he cautions that this is not a guarantee.

Conclusion

While bearish signals have emerged pre-ETF launch, it remains to be seen whether PEPE will capitalize on the development. The memecoin's undervalued status suggests that it could rally if buying pressure intensifies in the future.