The frog-themed memecoin PEPE has experienced a whirlwind of ups and downs this year, with its market cap soaring to a staggering $2 billion within mere days before entering a downward spiral. As of late, the cryptocurrency’s prospects have become even more uncertain, with a massive influx of PEPE tokens being deposited into exchanges – typically perceived as a sign of impending selling pressure.
Recent findings suggest that a wave of 33 trillion PEPE tokens, valued at approximately $46.37 million, has hit various crypto exchanges within the past 24 hours. Initially reported by Scope Protocol, this massive transfer led to a net gain of $22.94 million for the exchanges, originating from 1,176 unique wallet addresses.
This massive inflow of PEPE tokens could signal an imminent large-scale sell-off, potentially causing a dramatic drop in the token’s value. The popular memecoin has already seen a steady decline over recent days, losing nearly 30% of its value overnight following controversy with Coinbase.
While Coinbase later apologized to its users for labeling the frog meme as a “hate symbol,” the statement did little to mitigate the cryptocurrency’s diminishing value. Amid this latest development, the price of PEPE’s native token dropped by 0.51% in just one hour and is currently trading at $0.000001268.
On one hand, the large influx of PEPE tokens into exchanges may prompt some investors to hold their positions or even accumulate more, viewing the decreasing price as an opportunity. However, others may interpret the sell-off as a red flag, opting to exit their positions and limit potential losses.
Considering the volatility of memecoins in general, it’s crucial to carefully weigh the risk-reward ratio when investing in such assets. With PEPE’s roller-coaster performance and recent influx into exchanges, both bullish and bearish outcomes seem equally feasible at this point.
In summary, while the sudden surge of PEPE tokens flowing into exchanges could signal substantial selling pressure and a potential dip in the coin’s value, the ensuing market dynamics may determine whether this development ultimately proves to be bullish or bearish for the cryptocurrency.
As with any investment, it’s essential to conduct thorough market research before allocating your funds to cryptocurrencies like PEPE. Neither the author nor the publication holds responsibility for any personal financial losses that may result from your investment decisions.
Source: Coingape
