The whale sells 2.2 trillion PEPE at a loss - should you be worried?
The market shows the token $PEPE
PEPE
0.00001029
+1.78%
A conflicting picture for traders, as the significant bearish activity on-chain contrasts with the potential bullish technical chart pattern.
While a large whale exited its trillions worth of tokens at a loss, a classic continuation pattern on the daily chart suggests the potential for a significant increase.
On-chain data: Large whale exit.
According to data from the on-chain tracking service Look,,onch,,ain, a large whale $PEPE exited its complete token position of 2.2 trillion, recording an estimated loss of $3.5 million. According to Look,,onch,ain, wallet address 0x6ea4…FE0 deposited another 600 billion #PEPE tokens into #Binance about 50 minutes ago, completing a month-long series of returns to the platform.
On-chain data confirms that the whale withdrew 2.2 trillion $PEPE from Binance in mid-May. Over the past ten days, the whale returned these tokens in three separate deposits - the first on June 8, then on June 13, and finally on June 18. The last deposit, valued at $6.04 million, marked the end of the whale's position.
The withdrawal value a month ago was $27.64 million. By the time the whale completed the return process, the token prices had dropped enough to incur a loss of $3.5 million. Each transfer was directed to Binance's own deposit address. The data in the image shows all related transactions: the wallet received over 1.1 trillion PEPE from Binance 14 on May 17, added another 633 billion the next day, and continued to accumulate until it reached 2.2 trillion tokens.
This pullback seems to represent a complete exit. The whale incurred a loss and returned its entire balance to the same platform it came from. This move highlights a decline in the whale's confidence and adds pressure to the PEPE price. When these large holders sell their tokens to trading platforms, it often indicates a short-term bearish trend. The market is now watching to see if similar wallets will follow the same path.
PEPE forms a bullish flag with a potential increase of 102%.
On June 18, 2025, the #PEPEUSDT pair on the Binance platform formed a bullish flag pattern on the daily chart. The bullish flag pattern is a continuation structure where the price consolidates downward between two parallel trend lines after a sharp upward movement, indicating the possibility of another rise once the pattern is broken.
In this case, the PEPE token rose in early May 2025, then retraced within a narrow descending channel. The flagpole - the sharp upward leg - preceded the current consolidation. The consolidation structure remains intact and has not yet broken, but the pattern is still in play.
If the PEPE token confirms a breakout above the upper red trend line, it may resume its previous rise. Based on the height of the flagpole and the breakout expectations, the target is around $0.00002051. From the current price of $0.00001010, this represents a potential increase of 102%.
The 50-day exponential moving average (EMA), currently at $0.00001137, represents the first resistance level. If the PEPE token regains this level, it would support the potential for a bullish breakout. Trading volume remains high, with 5.1 trillion PEPE recorded on the analysis day, indicating sufficient liquidity to support a price breakout.
The PEPE relative strength index is approaching the oversold zone with weakening momentum.
At the same time, the relative strength index (RSI) for the PEPE/USDT pair on the daily chart fell to 37.65, measuring the strength and speed of price movements over the past 14 days, helping to determine whether the asset is in an overbought or oversold zone. An RSI drop below 30 indicates an oversold condition, while readings above 70 indicate overbought momentum.
Currently, the PEPE token's relative strength index is just above the oversold level, indicating weak buying pressure. The yellow signal line, which mitigates short-term volatility, stands at 45.03 and remains above the relative strength index line. This crossover shows a bearish divergence, indicating that the recent downward trend may continue unless momentum reverses.
Throughout the past year, the relative strength index of the PEPE token has fluctuated between 30 and 70, rarely entering extreme areas. The last time it approached current levels was during consolidation phases, followed by strong increases. However, this time, the RSI trend indicates a decline, reflecting decreased demand.
If the relative strength index drops further towards 30, the token may enter the oversold zone, which sometimes precedes a rebound. Until then, the PEPE token is still in a weak momentum phase, with limited signs of recovery in this indicator.
