Wintermute Removes 158B PEPE From Circulation — What The Heck Does It Mean?

NAIROBI (Coinchapter.com) – Wintermute, a crypto liquidity provider, removed 158 billion PEPE tokens from the crypto exchange Binance earlier this week, blockchain data reveals. The major transaction, worth around $9.6 million as of March 19, comes amid a period of high volatility in the broader cryptocurrency market, raising questions about Wintermute’s strategic intent.

Wintermute Removes Huge Number of PEPE from Binance – Are They Accumulating?

For instance, PEPE’s price has dropped nearly 40% from its local top of $0.00001057, declining alongside Wintermute’s massive memecoin withdrawal from Binance. It appears the crypto trading firm is accumulating during the PEPE price dip, signaling the formation of a local bottom price level, leading up to a potential price rebound.

Nonetheless, PEPE remains a low-liquidity memecoin. In other words, entities with a small amount of dollars can significantly move the memecoin prices.

PEPE Technicals Signal Further Market Uncertainty

Technical analysis indicates bearish momentum for Pepe. The token’s price has dipped below the 50-day simple moving average (SMA) on the 4-hour chart. However, the bulls are fighting to keep the price above the 200-day SMA, which now serves as a crucial resistance level.

Currently, technical indicators offer a strong sell signal. The Relative Strength Index (RSI) sits at 28, within the oversold range. This could indicate that Pepe is potentially undervalued, though substantial selling pressure remains a concern.

In addition, as Wintermute removes PEPE coins from circulation, the broader memecoin market is experiencing a downturn alongside Pepe. The current memecoin market cap stands at $48.2 billion, showcasing a 16.4% decline within the past 24 hours. Established memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) are also facing negative price pressures, mirroring Pepe’s recent performance. This indicates a wider trend of bearish sentiment affecting the memecoin sector.