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Here’s why PEPE prices slumped over the weekend

by xyonent
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The price of PEPE fell sharply on Saturday, reversing some of the gains made earlier in the week. Specifically, the price drop saw PEPE fall to $0.00001088, a 7.5% drop in 24 hours. The price issue of PEPE is Overall market slumpThe whales’ recent movements seem to be making the situation worse.

Specifically, large crypto investors recently sold large amounts of PEPE tokens into ETH, with on-chain data showing that one wallet swapped over 1.4 trillion PEPE tokens into ETH, leading to downward pressure on the price.

Hopes grow for ETH spot ETF approval

According to on-chain data from TheDataNerd, a well-known PEPE whale known by the address β€œ0x837” made a strategic shift over the weekend by converting over $18 million from PEPE to Ethereum. Such a large exit is a clear bearish signal for PEPE. These Ethereum holdings were then staked into the Compound protocol, signaling a long-term investment.

According to on-chain data, the whale recently deposited 300 billion PEPE, roughly the equivalent of $3.85 million, into cryptocurrency exchange Binance. The deposit resulted in an estimated loss of $1.73 million for the whale. Interestingly, this was not a one-time deposit.

Whales Initially I kept 1.1 trillion PEPE tokens (worth $14.42 million) were transferred to Binance and presumably also converted to ETH, meaning the whale has now deposited 1.4 trillion PEPE into Binance in the past two days.

Additionally, according to on-chain data, the whale β€œ0x837” withdrew 1,728 ETH worth $5.86 million from Binance, bringing his total to 4,374 ETH worth $14.91 million over the past two days.

PEPE’s market cap is currently $4.7 billion. Chart: Trading View

Spot Ethereum ETF Launch Expected

The whale’s decision to convert all of his PEPE holdings to ETH despite his losses suggests a deliberate strategic investment decision. This action reflects the market’s confidence in Ethereum’s potential. Spot Ethereum ETF Launch In July

Many market participants have drawn parallels with what happened with the launch of the Spot Bitcoin ETF. Ethereum is expected to see a similar surgeThe launch of a spot Ethereum ETF may not generate as much excitement as Bitcoin’s, given the difference in market size between the two cryptocurrencies, according to Morningstar ETF analyst Brian Armour.

At the time of writing, PEPE is trading at $0.00001129, recovering slightly from Saturday’s lows. However, the meme token is down 3.58% in the past 24 hours and 3.77% in the past seven days. Ethereum has also fallen 3.2% in the past seven days and is currently trading at $3,390.

Featured image from Reddit, chart from TradingView

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