In a significant move that has reverberated through the cryptocurrency community earlier today, Lookonchain reported on X, a prominent PEPE token investor has liquidated a substantial portion of their holdings.
The investor, often referred to as a “whale” due to their outsized influence, sold an astounding 100.14 billion PEPE tokens.
At the current market price, this sale represents approximately $2.34 million in value.
The motivation behind this large-scale divestment is believed to be the investor’s desire to acquire valuable non-fungible tokens (NFTs) from popular collections.
NFT Acquisitions
With the proceeds from the PEPE token sale, the whale investor made a concerted effort to bolster their NFT portfolio.
Specifically, the investor spent 537 ETH, equivalent to roughly $2.15 million, to purchase 16 Pudgy Penguin NFTs.
These sought-after digital collectibles are part of the Pudgy Penguins collection, which has gained significant traction and recognition within the NFT space.
In addition to the Pudgy Penguins, the investor also acquired 11 Lil Pudgy NFTs for 40.5 ETH, or approximately $163,000.
These acquisitions were likely made in anticipation of potential airdrops or other benefits that may be associated with holding these desirable non-fungible tokens.
Impact on PEPE Token Price
The large-scale selling of PEPE tokens by this prominent investor has had a noticeable impact on the cryptocurrency’s price dynamics.
Over the past 24 hours, the price of PEPE has declined by 3.08%, with a similar 1.90% drop observed in the past 7 days.
This price decline is particularly noteworthy given the substantial trading volume associated with PEPE.
In fact, a much sharper drop-off in trading volume has been observed over the last few days, suggesting that the intense price fluctuations may be driven by relatively low trading activity.
This could potentially indicate some level of market manipulation by algorithmic trading systems and bots, which are increasingly prevalent in the cryptocurrency ecosystem.
Technical Analysis and Future Outlook
From a technical analysis perspective, PEPE’s price action presents an intriguing picture. The cryptocurrency is currently situated within an ascending triangle pattern, which is generally considered a bullish formation.
However, the trendline forming the support level for this pattern is quite steep, indicating a heightened likelihood of a significant price drop should this support be breached.
In such a scenario, the next strong support level is found around $0.000015, representing a potential 35% decline from the current trading price.
While the market may take some time to reach this target, the high degree of recent volatility and choppiness could potentially lead to a bearish move before a new bullish phase emerges and the cryptocurrency embarks on a path of recovery and future growth.