The volatile nature of the cryptocurrency market impacted prices of the meme cryptocurrency themed around a frog, Pepe Coin, even further aggravating the situation after a whale investor made a significant sell off.
One of the largest investors liquidated an eye-watering 175 billion PEPE tokens on Binance, swelling the selling pressure even more.
On-chain data from Saturday exhibited that all the tokens were bought during the sell off on Binance. Pepe tokens have declined by 35% in the prior week and unfortunately, the current trends indicate that Pepe tokens will continue to decline further.
Institution Dumps 175B Tokens Ringing Alarms For Pepe Coin’s Price
On February 8, Nanscent became the latest victim of lookonchain’s trauma dumping, having offloaded an unbelievable 175 billion PEPE tokens for $1.5 million on Binance. To add insult to injury, Nanscent is no longer a stakeholder of Pepe Coin as this trade marks the closure of all its positions.
The sell-off was accompanied by an equally suspicious move previously where Nanscent sold 608.85 billion tokens from the mid-June to mid-July 2024 earning a cool multi-million dollar sum of $7.73 million.
Along with other institutions, Nanscent also resumed selling in November last year, surrendering to the siren call of Pepe Coin’s price skyrocketing. But as usual with Meme coins, the market’s sorrowful state meant
Nanscent was unable to sell at the top and had to make do with a measly $348k. Now, Nanscent’s final moves have left many feeling a sense of loss, anticipating further dwindling prices and diming prospects.
Macroeconomic Developments Bring Further Uncertainty
The entire cryptocurrency market is still grappling with strife due to the looming macroeconomic factors. For example, earlier this week, Trump announced tariffs on Canada, Mexico, and China that smashed the market. Although he suspended the tariffs on Canada and Mexico for a month, the market is still not favourable, so people would still lose money.
The combination of inactivity over a long period and certain negative events results in general pessimism. For now only the most optimistic retails traders would dare to speculate on price increases. This will lead to great losses in the case the market slows down further. Even fresh sell-off could make such weak assets like Pepe Coin suffer further.
How Much More Selling Pressure Can PEPE Price Withstand?
The market sentiment extends toward the bears’ side due to earlier sell-offs followed by supply crawling out and confidence evaporating for the asset. The greater market volatility has deepened the negative sentiment as the range bound price action prevails.
Currently, the price of Pepe Coin is around $0.000009046, which is almost 1.5% less than the peak. The coin’s 24-hour low and high were $0.000008482 and $0.000009809, respectively. This asset has lost 35% of its value in the past week which expresses the market sentiment as well as the greater sell-off.
Coinglass data shows that Pepe Coin’s futures Open Interest (OI) dropped by 2.5%, now standing at $246.59 million, indicating the loss of interest from investors’ side. The last liquidations in the last 24 hours totaled $3.72 million.
In a recent pricing analysis, CorpGape pinpointed a crucial support wall of $0.000006730, still way above current trading prices of the token. However, crypto market analysts seem to be tracking price action very closely expecting the trend to return but under a wide range of volatility from the rest of the market.
