Whales Offload PEPE While Bulls Resist Decline, Forecasting Record High

This week, a significant

token whale initiated a "capitulation-style" sell-off, unloading a $46 million position that had been built up since June 2024, as reported by blockchain analytics provider . The wallet 0x2f3 transferred its remaining $3.7 million in tokens to Coinbase for conversion, signaling the end of a calculated withdrawal that mirrors increasing market stress for the . Since the start of the year, PEPE has dropped 31%, and trading activity soared to $927 million in the last 24 hours as bearish signals intensified, .

This sell-off comes after a week marked by heavy whale selling, with large investors reducing their collective PEPE holdings by 0.5%. This mirrors a wider decline in the memecoin sector, as the CoinDesk Memecoin Index slid 23.4% over the same timeframe,

. Despite the recent downturn, some long-term investors remain optimistic. A well-known X user, "Pepe Whale," has forecasted a record high for the token this month, though this bullish stance stands in contrast to the recent capital flight.

This development underscores a growing sense of caution among institutional players in the memecoin arena. Just days before, another whale—who previously earned $36 million from PEPE trades—shifted attention to , amassing $8.14 million of the token at an average price of $0.97, . Such cross-chain moves highlight the unpredictable nature of meme tokens, as major holders frequently adjust their strategies in response to rapid price changes.

Market watchers are also monitoring regulatory shifts that could further sway sentiment. Coinbase, which received the PEPE whale’s final transfer, revealed plans to reincorporate in Texas, citing dissatisfaction with Delaware’s "unpredictable" corporate court system,

. This move, backed by shareholders, is part of a broader migration of tech firms seeking more favorable legal environments in other states.

Technical experts caution that PEPE’s recent 5% daily drop and 24% weekly slide may signal additional declines ahead. According to CoinDesk Research, the token’s chart now displays a "bearish continuation pattern," putting critical support levels at risk,

. Derivatives data adds to the concern: open interest in PEPE futures has fallen 18% over the past two weeks, indicating waning speculative interest.

This liquidation occurs against a backdrop of overall weakness in the crypto market.

slipped 1.9% to $101,259 on Wednesday, while the yield on 10-year Treasuries dropped to 4.06% as investors sought safer assets, . Still, some view the turbulence as an opportunity. A leading PEPE whale told CoinMarketCap that "volatility creates buying opportunities for those with long-term conviction," even as they themselves exit the market, .