PEPE Whales Bail at a Loss: Is the Memecoin Magic Wearing Off?

Big players are cutting their losses on PEPE—just as the memecoin's hype starts looking stale. Are we witnessing the first cracks in the frog-themed facade?

When whales dump, retail trembles. The latest PEPE exodus suggests even crypto's most degenerate gamblers might be losing patience with the 'buy high, sell low' strategy.

No fundamentals? No problem—until the music stops. Memecoins thrive on collective delusion, but this sell-off hints at a sobering reality check.

Bonus jab: Nothing says 'serious investment' like a token named after an internet frog. Wall Street must be seething with envy.

Can PEPE be afloat amid mounting pressure?

PEPE recently formed a classic Cup-and-Handle pattern, typically a bullish setup. However, the pattern failed to ignite a breakout above $0.00001200, and the price retreated inside a falling channel instead. 

Despite this, the descending structure remained intact at press time, with the bulls continuing to defend the $0.00001014 level. 

Meanwhile, the Stochastic RSI has entered the oversold zone, hinting at a possible short-term bounce. 

Still, the price must break above $0.00001280 to confirm a bullish continuation and invalidate further downside risk.

Source: Trading View

Investor apathy and reduced activity

Investor activity on the network has weakened, with all four major on-chain metrics flashing bearish signals at the time of writing.

Net network growth was just 0.70%, while “In the Money” wallets dropped by 7.07%, suggesting that many holders were underwater. 

Large transaction volumes have also declined by 5.18%, indicating reduced interest from high-value players. Furthermore, concentration levels were stagnant, highlighting limited accumulation by top wallets.

These trends aligned with the broader sentiment shift as both retail and institutional interest faded away.

Source: IntoTheBlock

At the same time, PEPE’s NVT ratio surged to 137, a level not seen in recent months. This spike means that the network valuation far exceeds its on-chain activity, typically a warning sign for possible overvaluation.

When transaction volume lags behind market cap expansion, the likelihood of a price correction increases. Therefore, unless on-chain usage picks up sharply, Pepe may remain exposed to downside pressure. 

Historically, such NVT spikes have preceded pullbacks, especially during sentiment-driven rallies.

PEPE losses mount

The MVRV Z-score has continued to fall, now reaching -0.29. This metric shows that, on average, PEPE holders are sitting on unrealized losses. 

While this suggests the asset is undervalued, it also reflects diminished holder confidence. In many cases, prolonged negative MVRV can indicate potential capitulation or long-term accumulation. 

However, in the current context—with bearish on-chain data and failed technical breakouts—it more likely leans toward ongoing weakness unless a strong reversal catalyst emerges.

Source: Santiment

Can PEPE regain strength, or is more pain ahead?

While PEPE displays oversold conditions and a possible bounce setup, broader metrics continue to reflect weakening momentum. Whale exits, rising NVT, and negative MVRV suggest that sentiment remains fragile. 

Unless bulls reclaim key resistance levels NEAR $0.00001280 with rising participation, any recovery could be short-lived. 

Therefore, the risk of further downside remains elevated despite technical setups hinting at a temporary relief rally.