Pepe Coin Pulls Back From Monthly High as Whale Selling Tempers Optimism

The popular frog-themed meme coin Pepe Coin (PEPE) surged to a new monthly high last week, extending its recent bullish momentum. However, the rally has since cooled, with PEPE dropping and currently trading around $0.000006162.

Despite the pullback, market participants remain focused on trading activity, where PEPE continues to dominate. The token is currently leading meme coins in trading volume, recording billions of dollars in daily turnover, a sign that interest and liquidity remain elevated.

Trading Volume Surges as Retail Interest Stays Strong

PEPE’s sharp rise in volume has become a key pillar supporting its price action. High turnover typically reflects strong market participation, particularly from short-term traders seeking volatility.

Supporters of the token argue that sustained volume could help cushion downside moves and potentially fuel another attempt higher if sentiment improves.

However, volume alone has not been enough to prevent short-term weakness, as selling pressure has begun to emerge near recent highs.

Whale Profit-Taking Raises Caution Flags

Contrasting the bullish narrative is a wave of profit-taking among large holders, commonly referred to as whales. Blockchain data shared by analytics platform LookOnChain highlights notable sell-offs by some of PEPE’s biggest investors.

In one recent case, a crypto whale liquidated 129.15 billion PEPE tokens at a loss of approximately $511,000 after holding the Ethereum-based meme coin for more than five months.

While the same trader still maintains over $800,000 worth of exposure across mid- and low-cap meme coins, the exit from PEPE has raised concerns about broader whale sentiment.

Key Support Holds, but Confidence Remains Mixed

PEPE’s price continues to trade above a key support level at $0.000005407, which has so far prevented a deeper correction. Clearing and holding above this level suggests that the broader structure remains intact in the near term.

That said, maintaining support does not necessarily signal renewed confidence from large investors. The recent whale exits suggest that some market participants may be locking in capital or cutting exposure amid uncertainty about further upside.

Money Flow Indicator Signals Light Distribution

Technical indicators are beginning to reflect this cautious tone. The Chaikin Money Flow (CMF) on the four-hour timeframe points to mild profit-taking activity across major exchanges, including Binance and Coinbase.

A softening CMF reading typically indicates capital flowing out of an asset rather than into it, aligning with on-chain data showing whale distribution. While not yet signaling aggressive selling, the indicator suggests that buying pressure may be weakening at current levels.

Outlook Hinges on Volume and Holder Behavior

Looking ahead, PEPE’s short-term direction will likely depend on whether strong trading volume can offset continued selling from large holders.

A resurgence in accumulation could stabilize price action, while sustained whale distribution may increase downside risk despite elevated market interest.

As with most meme coins, PEPE remains highly sensitive to shifts in sentiment, making the balance between retail enthusiasm and whale behavior a key factor to watch in the days ahead.