In a surprising turn of events, the meme-based cryptocurrency Pepe Coin (PEPE) defied market expectations by surging in value despite a massive sell-off by a major market maker. This bullish run comes amidst a broader crypto market recovery.
Large Exchange Dump Fails to Derail PEPE
On-chain data analysis platform Mest revealed that Wintermute, a prominent market maker, offloaded a significant amount of PEPE – a staggering 702.9 billion coins – to the Binance exchange on July 9th. This dump, valued at roughly $6.59 million, initially triggered concerns of a potential price decline for PEPE.
However, PEPE defied these expectations. Instead of falling, the meme coin price went against the grain and rallied by an impressive 12% on the day. This bullish run coincided with a general uptick in the broader cryptocurrency market.
Bullish Sentiment Fueled by Multiple Factors
Several factors appear to be contributing to PEPE’s unexpected surge. One key element is the behavior of a prominent crypto investor with a smart money address labeled “0xa14.” This address, boasting a perfect track record in PEPE trades, held onto its sizable PEPE holdings (512 billion coins) despite the recent market volatility. Notably, the average acquisition price for this investor’s PEPE stash is a mere $0.00001399, suggesting significant potential for profit. The investor’s decision to hold (or HODL in crypto terminology) has instilled optimism in the market regarding PEPE’s future prospects.
Furthermore, data from Whale Alert indicates a substantial PEPE accumulation by another address, “0x88a14933,” on Bybit exchange. This address acquired a whopping 9 trillion PEPE tokens, valued at approximately $83.25 million. This significant purchase injects significant buying pressure into the PEPE market, further bolstering its bullish momentum.
Technical Indicators Paint a Bullish Picture
Beyond these on-chain events, technical indicators also paint a bullish picture for PEPE. At the time of writing, PEPE is trading at $0.000009364, reflecting a 12.45% increase over the past 24 hours. The coin’s trading range for the same period sits between $0.000008238 and $0.000009555.
Data from Coinglass reveals a 4.14% uptick in PEPE’s futures Open Interest (OI), coupled with a substantial 40.67% surge in derivatives volume. This, combined with the rising price, suggests a potential uptrend for Pepe Coin.
Also Read: Bulls vs. Bears: Pepe (PEPE) Stuck in Tug-of-War, Price Rangebound at $0.0000088
Price Analysis and Investor Confidence
A recent price analysis by CoinGape Media highlighted PEPE’s ability to trade above the 200-day simple moving average (SMA) despite recent market volatility driven by Bitcoin (BTC). This technical indicator adds another layer of bullish sentiment. Additionally, data from Santiment suggests a noteworthy 5.76% increase in PEPE coin holders over the past month, indicating investor confidence in the face of the recent market dip.
In conclusion, Pepe Coin’s price surge defies expectations set by the major market maker sell-off. Several factors, including investor buying behavior, technical indicators, and rising holder numbers, contribute to the bullish outlook for this meme coin.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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