PEPE price pulls back as tokens worth $46M hit exchanges

• PEPE tokens worth $46.37 million have been deposited to exchange wallets in the past 24 hours, increasing the selling pressure on the meme coin. 
• PEPE’s price has plunged 30% overnight, losing more than $200 million in market capitalization 
• PEPE holders are back to break-even levels after a 2,000% price increase since the meme coin’s all-time low of $0.0000000551. 

PEPE, the third largest meme coin by market capitalization, has witnessed massive swings in its price in a matter of days. PEPE hit an all-time high of $0.00000431 on May 5 but has since then fallen sharply, trading at $0.00000127 at the time of writing. 

The meme coin gears up for more price volatility ahead as there has been  an increase in PEPE deposits across cryptocurrency exchanges. 

Also read: Lido DAO could begin its recovery as staking yield of stETH hits historical high

PEPE battles intense selling pressure 

PEPE, a meme coin inspired by “Pepe the Frog meme”, faces increasing selling pressure. Experts at Scope Protocol monitored on-chain activity and said that 33 trillion PEPE tokens, worth $46.37 million, were deposited by 1,176 addresses. 

Analysts at Scope Protocol have warned the crypto community of risks associated with massive swings in meme coins like PEPE. Typically, a large increase in deposits of the token to exchanges is considered bearish for the asset. 

PEPE price fell by a sharp 21% in the past 24 hours, according to  data from CoinGecko. With the rising exchange wallet balances of PEPE tokens, the price of the meme coin is likely to experience a further correction 

PEPE holders break-even, what’s next for the meme coin?

On-chain analysts at Santiment released a report on PEPE coin, examining on-chain metrics to find out where the meme coin is headed. Within the past 24 hours, the 30-day market-value-to-realized-value MVRV (a ratio of an asset's market capitalization versus its realized capitalization) shows that holders are currently at break-even. 

PEPE MVRV chart

A decline in PEPE price below $0.00000126 could push it into  negative territory, making it an “opportunity zone” for whales and traders to buy at a relatively low price. 

Still, It's important to note that PEPE’s price, similar to other meme coins, is largely influenced by speculation and crowd expectations. Meme coins typically suffer a pullback when traders engage in large volume of profit-taking by holders, like it’s happening currently with PEPE. PEPE holders are therefore likely to witness a correction in the short-term. 

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