Whales Dumping Pepe Coin As Prices Correct, Time To Sell?

Whales Offload Pepe Coin Amid Market Correction Concerns

A prominent whale recently transferred a substantial 254.65 billion Pepe coins (approximately $5.15 million) to Binance, yielding a $4.81 million profit within 13 hours.

Experts speculate that this action could signal preparations for a broader market correction after the coin's recent surge in value. The whale's holdings now total approximately 430 billion PEPE, worth $8.13 million with an unrealized profit of $7.74 million (a 13x return).

Profit-taking by whales is not uncommon in volatile meme coin markets. If the whale continues to move a significant portion of Pepe to an exchange, it may indicate an impending sell-off. This could potentially trigger a price correction given the coin's 100% price increase over the past month.

Technical Analysis of Pepe Coin

The PEPE/USDT chart depicts the volatility of the price, with green candles representing buying pressure and red candles indicating selling pressure.

Price action is currently below the 50-SMA and 100-SMA, suggesting bearishness in the short and medium term. The coin remains below the 200-SMA as well, further supporting a long-term bearish outlook.

Support levels exist around 0.00001990 and 0.00001850, which have historically triggered price rebounds.

ADX Indicates Bearish Outlook

The Average Directional Index (ADX) on the chart is currently at 30.22, indicating a strong downward trend. An ADX value above 25 suggests a sustained bearish trend.

Whale's Portfolio Beyond Meme Coins

In addition to Pepe coin, the whale holds significant positions in $DOGE (realized profit: $1.5 million) and $LDO (realized loss: $432K). The whale's mention of $LDO as "the strongest ETH beta thus far" highlights a strategic approach to investing in high-risk, potentially high-return assets.

Time to Sell?

Whale movements provide valuable insights into market trends. The recent Pepe coin sell-off raises questions about the optimal time to divest.

However, selling decisions should not be based solely on whale activity. Investors should consider market trends, investment goals, and risk tolerance before making any moves. A comprehensive analysis is crucial for informed decision-making.