Here’s Why PEPE Price Has Been Struggling Over The Weekend

PEPE Price Drops Significantly, Exacerbated by Whale Movement

On Saturday, PEPE's price plummeted drastically, reversing some of its gains from earlier in the week. The decline saw PEPE fall to $0.00001088, a 7.5% drop in 24 hours.

While PEPE's price struggles reflect the broader market downturn, recent whale movement has intensified the situation. A major crypto whale recently unloaded a substantial amount of PEPE tokens for ETH. On-chain data reveals that a single wallet swapped over 1.4 trillion PEPE tokens for ETH, contributing to the downward pressure on price.

Whale "0x837" Triggers Exodus from PEPE

Over the weekend, a notable PEPE whale, "0x837," executed a strategic shift by converting over $18 million from PEPE to Ethereum. This significant exit serves as a bearish signal for PEPE. The Ethereum holdings were subsequently staked into the Compound protocol, indicating a long-term investment strategy.

On-chain data shows that the whale also deposited 300 billion PEPE, valued at approximately $3.85 million, into crypto exchange Binance. This deposit incurred an estimated $1.73 million loss. However, this was not an isolated incident.

The whale had initially deposited 1.1 trillion PEPE tokens worth $14.42 million to Binance, likely for conversion to ETH. In total, the whale has deposited 1.4 trillion PEPE on Binance within the past two days.

Furthermore, data reveals that "0x837" withdrew 1,728 ETH worth $5.86 million from Binance, increasing its ETH accumulation to 4,374 ETH valued at $14.91 million over the last two days.

Ethereum Spot ETFs Fuel Sentiment

The whale's decision to convert all PEPE holdings into ETH, despite incurring a loss, suggests a deliberate strategic investment. This action reflects market confidence in Ethereum, driven by the anticipated launch of Spot Ethereum ETFs in July.

Many market participants have drawn parallels to the events surrounding the launch of Spot Bitcoin ETFs, speculating that Ethereum could experience a similar surge in demand.

While the launch of Spot Ethereum ETFs may not generate the same level of excitement as Bitcoin ETFs due to differences in market size, it remains a positive catalyst for Ethereum.

At the time of writing, PEPE is trading at $0.00001129, showing a slight recovery from Saturday's lows. However, the meme token has faced a 3.58% decline over the past 24 hours and a 3.77% drop in the past week. Ethereum has also experienced a 3.2% decline in the last seven days, currently trading at $3,390.