PEPE’s major holders have recently sold off a significant portion of their holdings in the last 30 days. On-chain data indicates that the memecoin was undervalued and could potentially rally following this event.
Despite the general bullish sentiment surrounding the upcoming Spot Ethereum (ETH) ETF launch in the market, it appears that large holders of Pepe (PEPE) do not share the same optimism. Analysis of address holdings data reveals a decrease in holdings among addresses holding tokens worth $100,000 to $10 million, suggesting that they have been selling off their assets.
This trend is unexpected, considering that PEPE is a top memecoin on the Ethereum blockchain. The selling off of tokens by big players in the memecoin sector contradicts the bullish market sentiment.
If this selling trend persists after the launch of the spot Ethereum ETFs, it could potentially lead to a price hike for PEPE. However, sustaining this increase in price may prove challenging without a corresponding increase in buying pressure.
At the current time, PEPE is valued at $0.0000087, representing a 49.27% decrease from its all-time high on May 27. Further distribution of tokens could potentially drag the price down even further, with a possible 55% decrease from the highs. However, post-Ethereum ETF launch, the token may see improved performance on the charts.
The Market Value to Realized Value (MVRV) ratio indicates that PEPE has experienced a poor level of demand dynamics recently, with a 30-day MVRV ratio of -10.90%. Despite this negative ratio, the undervaluation of the memecoin relative to current market conditions may encourage market participants to hold onto their tokens.
With increased buying pressure in the future, the price of PEPE may attempt to revisit its previous highs. Despite bearish signals prior to the ETF launch, some analysts believe that the memecoin could benefit from this development.
In summary, the reaction of PEPE to the Ethereum ETF launch remains uncertain. Analysts like Donny Dicey speculate that the launch could potentially spark hype and drive the market cap of PEPE higher. Whether this scenario plays out remains to be seen.