Exploring the effect of PEPE whales’ exit ahead of Ethereum ETF launch
What caused PEPE whales to sell their holdings?
PEPE whales sold their holdings possibly due to the expectation of the Spot Ethereum ETF launch and the desire to capitalize on potential profits4. The memecoin was undervalued, and on-chain data suggested it could rally after the event. Some whales may have also sold to take profits or reduce their exposure to the cryptocurrency market.
How might the Ethereum ETF launch impact PEPE's value?
The Ethereum ETF launch could potentially impact PEPE's value positively. As a top memecoin on the Ethereum blockchain, increased demand for Ethereum due to the ETF launch might lead to a hike in PEPE's price. However, sustaining this hike would require increased buying pressure. Some analysts believe PEPE could benefit from the hype surrounding the Ethereum ETF, possibly even revisiting its previous highs if market conditions and buying pressure align.
What does the MVRV ratio indicate about PEPE's market dynamics?
The MVRV ratio for PEPE indicates that the memecoin is currently undervalued relative to its current market conditions, with a 30-day MVRV ratio of -10.90%. This poor demand dynamics might force market participants to hold on to the token, and if buying pressure intensifies later, the price could attempt to revisit its May highs.