- 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.
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.
In the past 24 hours, a large amount of $PEPE has been deposited into exchanges:— 0xScope ( . ) (@ScopeProtocol) May 12, 2023
33T $PEPE worth $46.37M, with a net deposit of $22.94M from 1,176 addresses.
Beware of MEME coin drop risks pic.twitter.com/443wqMCTTJ
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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