PEPE, the memecoin darling, is once again capturing the attention of market watchers, thanks to a flurry of whale activity. Despite the token’s recent price decline, large investors are piling into PEPE, a move that could potentially signal a bullish reversal.
According to on-chain data platform Spot On Chain, two substantial whale wallets acquired a staggering 828.8 billion PEPE tokens, worth approximately $6.2 million, from cryptocurrency exchange Kraken on August 17th. Interestingly, these same wallets had previously offloaded 500 billion PEPE before scooping up the massive chunk at the recent price low of $0.0000074.
Whales, as they are known in the crypto world, hold a disproportionate amount of influence over market prices due to their ability to move large volumes of tokens. With IntoTheBlock data revealing that PEPE’s concentration is heavily skewed towards whales, it’s clear that their actions can significantly impact the token’s price trajectory.
So, does this recent whale buying spree indicate a potential buying opportunity for other investors?
Several indicators suggest that PEPE may indeed have been undervalued at the time of the whale purchases. The negative MVRV (Market Value to Realized Value) ratio of -13% confirmed that short-term holders were underwater, implying that the token was relatively cheap. Additionally, PEPE’s surge to the top of Open Interest rankings among memecoins hints at increased market activity and liquidity, which can be bullish for price.
Technically, the MACD indicator is on the cusp of a bullish crossover, a signal often associated with the start of an uptrend. However, it’s important to note that the overall market structure remains bearish, and the RSI is currently hovering below the neutral level, indicating indecision among traders.
Also Read: Bearish Storm Brews For Pepe Coin – Exchange Outflows And MVRV Signal Trouble
For PEPE bulls to gain a stronger footing, a decisive break above the $0.000009 resistance level is crucial. Such a move would invalidate the bearish outlook and open the door for a more sustained price recovery.
While the recent whale activity has injected a dose of optimism into the PEPE market, investors should approach with caution. The memecoin space is notoriously volatile, and past performance is not indicative of future results.
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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