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Meme coin PEPE navigates a complex environment as its crypto exchange reserves reach a two-month high, accounting for 40.59% of the total supply. This increase in exchange reserves raises questions about the potential for a price drop when combined with whale transactions and profit-taking signals.
What Does the Increase in Exchange Reserves Mean for Altcoin PEPE?
Recent data from Santiment reveals significant developments in PEPE’s on-chain dynamics. Currently, 40.74% of PEPE’s total supply is held on exchanges, the highest rate since October 23.
The trend of increasing exchange reserves has been steadily continuing since December 22, as shown by the exchange flow metric. Additionally, there has been a rise in inflows at the beginning of January, indicating an increased presence of PEPE on exchanges.
Traditionally, an increase in exchange supply often leads to increased selling pressure, negatively affecting asset prices. The rise in exchange reserves, coupled with an increase in inflows, points to a potential scenario where selling activities could intensify, contributing to a bearish outlook for PEPE’s price.
Whale Transactions and Profit-Taking: Bearish Signals Strengthen
Key metrics such as whale transactions valued at over $100,000 have been on the rise since January 8. This is consistent with the Network Realized Profit/Loss metric, which indicates significant wallet investors taking profits.
The convergence of these measurements strengthens the bearish thesis for PEPE’s price, pointing to a scenario where large investors are capitalizing on profits and potentially triggering a broader downturn.
Large Wallet Investor Moves PEPE to Binance
In a significant on-chain transaction, a large wallet investor transferred two trillion PEPE tokens to Binance last Friday. This whale had previously invested 920 staked Ether (stETH) and 253 wrapped Ether (WETH) to acquire 2.01 trillion PEPE tokens between May 5 and September 10. According to on-chain data, the potential profit from selling these assets could reach $705,000.
As of the latest update, PEPE’s price stands at $0.00000138. Compared to the previous day, it has increased by 2.19%, and by 11.11% on a weekly basis. Although short-term price movements show a positive trend, broader on-chain indicators suggest a cautious approach.
