Following Pepe’s [PEPE] recent listing on Coinbase about nine days ago, the memecoin experienced a surge to a new all-time high of $0.00002524, maintaining its upward trend for the month with a significant 117.80% increase.
Since then, PEPE has retraced to a low of $0.00001807. This decline has presented an opportunity for both retail investors and large token holders, known as whales, who are now taking advantage of the dip in anticipation of further price appreciation.
An Accumulation of 309.6 Billion PEPE Tokens by a Whales
Recent data from SpotOnChain, an on-chain tracking platform, reveals that a new whale has entered the market with a substantial purchase. This whale established a wallet in the past few hours and withdrew 309.6 billion Pepe tokens valued at $6.45 million from the Kucoin exchange.
When whales start accumulating tokens, it typically indicates confidence in the market’s direction. Moreover, such significant inflows of capital create buying pressure, which could potentially drive the price of PEPE higher.
Impact on Pepe’s Price Trends?
Predictably, Pepe has seen a 1.85% increase in value over the last 24 hours. Before this uptick, the memecoin had been on a downward trend, declining by 1.40% over the week.
Although PEPE had previously dropped from its peak of $0.0000218 to $0.0000198, there are indications that bullish sentiment is trying to regain control.
However, various market indicators suggest that there might be further downward movement before the bulls manage to take charge once again.
For instance, Pepe’s Relative Strength Index (RSI), which had entered the overbought zone a week ago, is now declining and currently stands at 70. Despite the drop, this RSI level remains in the overbought region, typically signaling an impending correction.
Similar signals can be seen in the memecoin’s Moving Average, which has now shifted to 74.
Furthermore, the Average Directional Index (ADX) for PEPE indicates that the ongoing uptrend is losing steam, with bearish momentum gaining strength. The ADX has climbed from 35 to 42, suggesting that sellers are becoming dominant in the market.
Moreover, Pepe’s Network Value to Transaction (NVT) Ratio, when factoring in circulation, has surged from 41.89 to 89.45. This elevated NVT ratio implies that PEPE may be overvalued, as its price surge is not supported by network activities.
Therefore, the recent price spike is likely driven more by speculation rather than genuine utility.
This lack of utility and reduced on-chain activities is further evidenced by the dwindling number of active addresses associated with Pepe. According to IntoTheBlock data, active addresses have declined from 23.63K to 15.16K within the past week, indicating a notable decrease in user engagement and suggesting that the current price rally lacks strong fundamental support.
Future Prospects for the Memecoin
In summary, despite seeing modest gains on daily charts following the influx of whales, PEPE appears to be undergoing a corrective phase.
Under these circumstances, Pepe might experience a decline, possibly dropping to $0.000018 and further finding support around $0.00001578.
In the event that significant buying pressure results from the whales’ actions, Pepe could potentially reclaim $0.000022.
A breakthrough beyond this level could pave the way for PEPE to achieve a new all-time high, given the limited resistance above this point.