$PEPE Faces Heavy Losses as Whales and Traders Struggle Amid Market Downturn
The cryptocurrency universe is undergoing a worrisome decline as the formerly favored $PEPE token battles to stay above crucial price points.
In the last few weeks, the token has been under duress, with some of its biggest holders going in the opposite direction of the market. Most recently, the $PEPE whales and other significant token holders have been reorienting themselves to preserve losses that were stacking up from trades made over the last few months. A lot of this has got some short-sellers giddy, thinking that they now have a better chance of making money with the token declining instead of going up.
Major Sell-offs and Risky Trades Amid Ongoing Market Decline
A telling recent episode of the current situation is an enormous sell-off that happened today. One whale, a major holder of $PEPE, crashed the price by dumping an insane 438 billion tokens, worth around $3.03 million at today’s rates. This whale took a huge loss: more than $434,000, in fact, which maybe tells us that they’re really not that confident in the price of this token recovering anytime soon. And the price crash happened today.
A whale dumped 438B $PEPE($3.03M) at a loss of $434K in the past hour.https://t.co/OotEHYbBMihttps://t.co/6POSJQ3ecg pic.twitter.com/7opD75o5qo
— Lookonchain (@lookonchain) March 31, 2025
This sell-off is just one of many recent signs of struggles within the $PEPE community. Even OG whales—those who have held $PEPE since its inception—appear to be cashing out en masse. If these long-term holders are divesting after such an extended period, it almost certainly suggests a loss of faith in the token’s future. Whenever these major sell-offs happen, market sentiment grows even weaker. And that’s what I think is happening right now.
A recent case showed a trader getting into an unfortunate circumstance after making a bet on $PEPE’s price action. This trader went long on $PEPE, using 10x leverage, to amplify the gains. Though they reasoned it could be a good trade, it was a super risky call. The potential losses, in this case, a reality by the end of the weekend, totaled out to $3.36 million. The call did not pay off, and the market moved against the trader. Charting out the risk versus reward can always make leveraged trading seem like a swing worth taking. Yet in this instance, it looks like when the trader swung, they struck out. And big.
This trader went long on $PEPE with 10x leverage and is now down over $3.36M!
To avoid liquidation, he deposited an additional 3.8M $USDC into #Hyperliquid and partially closed his positions to limit losses.https://t.co/FX6sISWuDP pic.twitter.com/sSvX3So3F3
— Lookonchain (@lookonchain) March 30, 2025
The trader desperately tried to prevent their position from being fully wiped out and to avoid liquidation. They put in an extra 3.8 million USDC into their account on Hyperliquid and partially closed their leveraged positions. They were trying to limit further losses. While this may have temporarily stabilized the trader’s situation, it serves as a stark reminder of the risks involved in trading cryptocurrencies, particularly when you use leverage.
The Strain of Market Volatility
Recent events highlight the intense strain that both whales and retail traders face as $PEPE falls below key support levels. The token, once called a rising star in the meme-coin market, now has a hard time maintaining investor confidence amid heavy selling pressure and high market volatility. Whales—those with significant holdings—can sway markets due to their large positions. But they also are not immune to the volatile nature of cryptocurrencies, especially when downturns occur. Even $PEPE’s most ardent supporters have to be having some serious doubts.
The uncertainty plaguing the market has led many to exit their positions, with some even beginning to hedge. Meanwhile, the pressure being exerted by leveraged trading on the market is intensifying, with traders trying to manage their risk by liquidating or strengthening their long positions. For this reason, the market is facing yet another wave of selling.
This situation also raises crucial issues regarding the sustainability of tokens such as $PEPE that are based on memes. Meme coins have historically been buoyed by community support and excitement, yet they are also highly susceptible to trends in the broader market and to the prevailing mood of investors. In a down market, tokens like $PEPE can lose their luster very quickly. Investors in such coins tend to be more risk-on and are seeking high rewards. If capital starts flowing away from meme tokens, can $PEPE survive long enough to prove the haters wrong?
What’s Next for $PEPE?
As $PEPE keeps experiencing major sell-offs and losses not just by traders but also by whales, it’s hard to see a future for this token. The long-term prognosis has to be in doubt under these kind of sell-off conditions. For many traders and investors, the token’s current volatility might just present opportunities to cut their losses in a market that still looks like it’s headed lower.
$PEPE’s potential to re-establish itself as a viable token is tightly wound with how well the broader market performs, and just how well the community opens up their arms once again to $PEPE holders. Until we see otherwise, $PEPE’s future doesn’t appear bright at all, as we’ve already discussed it being in a kind of freefall.
The market is making changes. Traders and investors watch closely to see if $PEPE can re-establish itself or if this downturn is the beginning of a longer-term struggle.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
