A prominent cryptocurrency investor, often referred to as a whale, has faced a substantial loss of $434,000 after offloading 438 billion PEPE tokens worth approximately $3.03 million.
The liquidation was executed through two separate transactions within a short timeframe, suggesting a strategic decision, either to mitigate further losses or to reallocate funds.
Large-scale sell-offs like this often influence market sentiment, triggering volatility in price movements.
Given the speculative nature of meme coins such as PEPE, investors are now closely monitoring the potential ripple effects on the broader market.
Breakdown of the PEPE Token Sell-Off
The whale’s liquidation occurred in two major transactions. The first involved the sale of 232.281 billion PEPE tokens for $1.62 million, followed by a second transaction where 205.686 billion tokens were sold for $1.41 million.
Despite accumulating a total of $3.03 million from these sales, the investor still recorded a net loss of $434,000, indicating that the original investment was made when PEPE’s price was significantly higher.
The scenario underscores the inherent risks of investing in meme-based cryptocurrencies, where price volatility can lead to unpredictable outcomes, even for large-scale investors.
Also Read: Curve Founder Michael Egorov Offloads 469K CRV at a Massive 54% Drawdown, Resulting in a $745K Loss
PEPE’s Price Decline and Market Performance
Following the whale’s sell-off, PEPE has witnessed a decline in its price. As of today, PEPE is trading at $0.057063, reflecting a 2.11% drop in the last 24 hours and a 7.25% decline over the past week.
The meme token’s 24-hour trading volume stands at an impressive $561.9 million, signaling sustained market activity despite the downward trend.
With a circulating supply of 420 trillion PEPE tokens, the cryptocurrency holds a market capitalization of approximately $2.97 billion.
However, the whale’s recent liquidation has raised concerns about short-term price stability and whether further sell-offs may follow.
Market Indicators Suggest Mixed Sentiment
While PEPE’s price has seen a decline, market indicators provide mixed signals regarding future movement.
The token’s open interest, a measure of the total number of outstanding derivatives contracts, has decreased by 1.05% in the past 24 hours, now valued at $35.9 million.
The drop suggests that traders may be closing positions, potentially leading to reduced speculation.
However, the Relative Strength Index (RSI) of PEPE currently sits at 48.61, hovering near the 50 level.
The positioning indicates a balance between buying and selling pressure, suggesting that interest in PEPE remains steady. As the market digests the impact of the whale’s sell-off, investors are bracing for potential volatility in the coming days.
Also Read: Ethereum Investor Offloads $2.93M After 2-Months Of Dormancy While Facing $5.34M Unrealized Loss