A whale recently increased its staking position by moving 254.65 billion Pepe coin (roughly $5.15 million) to Binance. The profit from this deposit was $4.81 million in 13 hours.
This suggests that this could be part of bigger preparations for a correction in the broader market following a major rally in the value of the coin.
Together the holdings are about 430 billion PEPE, worth $8.13 million with a wild unrealized profit of $7.74 million. This in turn represents a 13x return.
Price directions heavily depend on the efforts of the large holes in the volatile meme coin market, and this level of profit-taking is not new in these markets.
If the whale moves a huge percentage of Pepe to an exchange, perhaps it will sell the coin after an incredible 100% price rise over the past month.
Technical Analysis of Pepe Coin
On the other hand, the chart represents the volatility of the price for PEPE/USDT. The price bars represent buying pressure indicators in the form of green candles and selling pressure as red candles.
The coin’s price is currently located below 50-SMA which suggests the short-term bearish picture. It is also established below the 100-SMA which implies a bearish signal.
It quite continues in the near and medium term. Further, the pepe coin price has been below the 200-SMA for the period shown in the chart to support an extended bearish outlook.
The first is around the 0.00001990 mark which sees high volatility and rejection by price-makers several times. There is a support level around 0.00001850, at which the price rebounds after a downtrend behavior.
ADX Notes Bearish Outlook
On the other hand, an ADX (Average Directional Index) chart is plotted at the downside of the chart. At present its value is 30.22 which is marked as a red line on the chart.
ADX values above 25 mean a strong trend. In this case, a descending trend is bearish, which is supported by ADX.
The general outlook is projected as bearish. The price magnitude was observed to be persistently below all the moving averages and a high ADX.
Several attempts to break through the resistance level but no breakthrough indicates that the bearish force of Pepe coin is strong.
A breakdown of the resistance level of 0.00001990 would suggest a reversal while the price continuing below the support level of 0.00001850 would lead to further declines.
In the end, the whale’s portfolio goes beyond meme coins. Currently, the investor’s assets are 3.96 million $DOGE (realized profit of $1.5 million (15x), 2.5 million $LDO that generates a (realized) loss of $432K (9.5%).
The only thing that stood out was the investor mentioning $LDO as “the strongest ETH beta thus far,” which shows that the investor is approaching high-risk and potentially high-return meme coin investments as well as other altcoins within meme coins. This introduces different risk-return parameters.
Is Now the Time to Sell?
The actions also reveal another important aspect concerning crypto investment, which is managing and assessing risk on portfolios.
The whale spreads investments across multiple asset types, taking advantage of market movement across segments to soften losses, and ride gains in a highly unpredictable market.
For retail investors observing whale movements such as these, the big question remains: is it time to sell Pepe coin? A sell-off by the biggest holder could bring price adjustments as such a big price rally is in question.
But selling it should not be a decision taken lightly. A truly useful decision-making tool should rely on a complete analysis of market trends, personal investment goals, and of all things risk tolerance levels.
