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Why is Pepe Dropping? Is it Time to Sell?

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By Brennan Forrest - - 5 Mins Read
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Pepe the frog, meme coin, meme
Pepe (Shutterstock)

A new report from reliable sources shows that Pepe has seen some massive bearish trends in the past few hours. The news is a pathetic one, as a whale who purchased a whopping $3 million worth of Pepe tokens is now sitting at an unrealized loss of $600,000.

Pepe coin price recently reached its all-time high before it started going through a massive bearish trend. This saw the portfolio of many investors go down in red. Pepe is a meme coin claiming to revolutionize the meme coin sector. On their website, the developers of this project claim that Pepe will succeed top meme coins like Dogecoin and Shiba Inu as the OG of the meme coins. 

But it seems they are far from realizing that goal as the coin has dipped recently. It has left many investors in huge losses after the coin dropped by more than 42%. According to blockchain analytics service Lookonchain, a meme coin whale purchased hundreds of billions of Pepe tokens. The total worth of these tokens was reportedly around $3 million.

The crypto whale, according to Lookonchain, purchased 962.3 billion Pepe tokens using 70 Wrapped Bitcoin (WBTC) and 470 Ether (ETH) for an average price of $0.000003122 on May 5. However, the price of Pepe has gone down drastically, leaving the whale at an unrealized loss of $600,000. From the average price of $0.000003122, the Pepe coin price has reduced to about $0.0000018, more than 42%. A loss this big has left many whales gasping for breath as the cryptocurrency is not showing any sign of recovery yet. 

"A whale bought 962.3B $PEPE($2.46M currently) with 70 $WBTC ($2.07M) and 470 $ETH ($937K) in the past 2 days, with an average buying price of $0.000003122.

He has lost ~$541K at the current price!" Lookonchain announced on Twitter. The Pepe price has reduced the total worth of the tokens held by this whale and is now pegged at $2.4 million.

https://twitter.com/lookonchain

Although Pepe's price has reduced, it is still managing to keep its market capitalization above $1 billion. The market capitalization of this meme coin has grown so big that it has jumped to become the 45th most valuable cryptocurrency within a short while. 

More People Buy Pepe Tokens 

Despite the price reduction, data shows that more investors are still staking their money on Pepe, as many don't want to miss out on the hype. Since the creation of this meme coin on April 14th, its market valuation has become so big that it has more than $600 million in trading volume daily. And within a few weeks of its existence, users of this project have managed to burn more than 5,300 Ethereum tokens. Putting it in fiat, that is more than 10 million US dollars of gas. 

Dune Analytics also shows that Pepe has a huge influx of users. Starting from 0 holders in the last few weeks, Pepe has seen its number of holders increase to more than 140,000. Apart from the number of holders and market valuation, Pepe has also increased BTC-related transactions, according to reliable sources.

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