What happened?
Large PEPE holders sold heavily before last week’s market-wide liquidation, offloading around 1.5 trillion coins and leaving the token at multi-month lows. Whales haven’t reloaded since the dip, and on-chain data shows top holdings continuing to trend down. That preemptive de-risking amplified the sell-off and dampened short-term bullishness for PEPE.
Who does this affect?
This hits retail traders and meme-coin speculators hardest, especially anyone who bought into the rally and got caught during the drop. Smart money and whale wallets that reduced exposure likely protected profits and are now waiting on a better entry, while liquidity providers and token stakers face higher volatility and potential losses. New projects and presales like PepeNode may benefit as capital shifts toward opportunities promising yield and built-in token burns.
Why does this matter?
The technical breakdowns point to more downside — analysts see a possible ~40% move toward the late-2024 low — which could reshape risk flows across meme coins and broader crypto. At the same time, macro factors like potential late-year US rate cuts could reverse sentiment, creating a bear-trap scenario that smart money might be positioning for. Meanwhile, high-yield presales and token-burning mechanics (e.g., PepeNode) can draw capital away from PEPE, raising volatility and changing where traders hunt for gains.