PEPE Sees Record Exchange Outflow as Bears Defend Key Resistance Level

The Pepe (PEPE) token has seen a significant exchange outflow of 4.54 trillion tokens, raising questions about whether this is a healthy pullback or the start of a deeper correction.

In recent weeks, PEPE had rallied nearly 25% over four consecutive weeks, breaking above $0.000003, but the rally has since lost steam with a 5% decline over the past 14 days.

While some profit-taking is expected after a strong rally, the decline in PEPE's price coincides with the token approaching a major resistance level and weakening memecoin capital flows, making this correction different from a standard reset.

Santiment's on-chain data shows that large exchange outflows are often a sign that holders are moving tokens into private wallets instead of keeping them on exchanges for selling, which could indicate that whales are absorbing supply into weakness instead of exiting positions.