PEPE rose about 13% during October 17–22, when Bitcoin and Ethereum traded sideways, as exchange supply first fell sharply and then began to rise again.
Data shared by Santiment on October 23 revealed two distinct movements accompanying PEPE’s rise. First, an unusually large net outflow occurred from exchanges; on the following days, as the price rose, the amount of the coin held on exchanges began to increase again.
Outflows from Exchanges Reached Eight Times the Average
On October 16, the PEPE supply on exchanges fell by 4.77 trillion coins, or 6%. This was the largest single-day decline in Santiment’s data since at least October 2.
That same day, 15 transfers worth more than $1 million were recorded. Net outflows from exchanges totaled about $20 million, roughly eight times the daily average during the October 11–15 period.
PEPE’s price rose about 13% from the October 17 close to the October 22 close. The fact that Bitcoin and Ethereum ended the same period roughly flat highlighted PEPE’s divergence from major cryptocurrencies.
Exchange Supply Rose Again During the Rally
Between October 19 and 22, the amount of PEPE on exchanges increased by 2.11 trillion coins. Net inflows were recorded on each of October 20, 21, and 22.
This increase represents more than 40% of the amount that left exchanges on October 16. As a result, a significant portion of the initial strong outflow was offset in terms of volume over the following days.
The notable point in the data is that exchange supply began to grow again as the price rose. While these inflows do not directly indicate that selling took place, the shift in the direction of flows accompanying the rally is emerging as one of the indicators to watch for PEPE.
Not investment advice.