Pepe (PEPE), the popular memecoin, has seen renewed interest from whale investors, fueling its recent price rebound. According to blockchain analytics firm Spot On Chain, a newly created wallet withdrew 500 billion PEPE tokens worth $4.3 million from Binance, signaling confidence in the token’s potential upside.
Adding to the bullish sentiment, an early PEPE investor, who previously minted a 110% gain on the token, has also resumed accumulation. The trader recently withdrew 506.2 billion PEPE tokens worth $4.4 million, increasing their holdings to 699.8 billion tokens valued at $5.11 million. These significant whale movements have coincided with a strong price recovery.
Can Whale Activity Reverse Q1 Losses?
AMBCrypto reported that PEPE whale activity surged by 170% this week, with large investors accumulating a staggering 14.5 trillion tokens. This influx of whale interest has had a direct impact on price action, as PEPE has rebounded 63% from its March low of $0.0000056. However, despite this rally, the token remains significantly below its all-time high of $0.000028, reached in December 2023.
PEPE suffered an over 80% drawdown in Q1, and while the recent rally has reduced losses to approximately 70%, investors who bought at the peak are still facing significant losses. The key question remains—can renewed whale accumulation sustain the recovery?
Market Sentiment and Technical Indicators
On-chain data from Santiment suggests that key demand signals, such as social volume and active addresses, remain low, indicating limited organic retail participation. Moreover, positive sentiment, which initially spiked alongside the price pump, has since cooled to neutral territory, suggesting that the market direction is still uncertain.
In the derivatives market, PEPE’s Open Interest (OI) surged from $26 million to $50 million before retracing to under $45 million, indicating increased speculation. However, spot Cumulative Volume Delta (CVD) showed only marginal movement, hinting that the rally might be driven more by leveraged positions than actual spot demand.
Price Outlook: Bulls Face Key Resistance
On the three-day price chart, PEPE’s 63% rebound has erased its March losses. However, the token is still trading below key technical barriers, including the bull market trendline and the 200-day moving average (200DMA). A decisive breakout above these resistance levels would significantly improve PEPE’s chances of reversing its broader Q1 losses.
While whale activity remains a bullish factor, sustained recovery will require stronger retail participation and improved market sentiment. Until then, PEPE’s future trajectory remains uncertain, making the next breakout level critical for traders.
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.
Also Read: Pepe Coin (PEPE) Bulls Gain Momentum – Is a Breakout to $0.00000850 Next?
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