The cryptocurrency market remains in an extended correction, with meme coins facing the harshest impact. PEPE, a standout in the sector, has not been spared, experiencing a sharp decline back to its November 2024 price levels. Currently trading at approximately $0.00000890, PEPE has suffered a prolonged sell-off from its December highs of nearly $0.00002800.
Critical Support Zone in Focus
PEPE is now hovering just above a crucial sell-side liquidity zone between $0.00000780 and $0.00000840. Historically, this area acted as a launchpad for a 238% rally in November 2024, propelling the token to $0.00001839. If history repeats itself, this zone could serve as a strong support level, potentially offering a buying opportunity.
A sweep of liquidity resting below $0.000006 could confirm a reversal before a significant upward move. If PEPE rebounds from this zone, it could push toward buy-side liquidity at $0.00002200, with further upside potential reaching $0.00002800. However, failure to hold above $0.00000600 could result in another leg down, targeting liquidity pockets near $0.00000531 or even lower.
Whale Activity Could Signal a Bottom
In the wake of PEPE’s price drop, on-chain data reveals a significant transaction: a new wallet has acquired 249.975 billion PEPE—worth approximately $2.31 million—at $0.00000924. This substantial purchase suggests smart money accumulation, potentially signaling a reversal in trend.
If other investors interpret this as a strategic dip-buying opportunity, PEPE may maintain crucial support levels and initiate an upward move toward $0.00001050. However, if this purchase is merely a mid-range entry without strong follow-through, PEPE could continue its decline toward $0.00000880 or consolidate between $0.00000900 and $0.00000950.
Whale Holdings Point to Bullish Outlook
Analyst Max noted on X (formerly Twitter) that PEPE’s price movements closely correlate with whale activity. Historically, when whale holdings increase while retail investors sell, a price surge often follows. Currently, whales are aggressively accumulating while retail investors offload their positions—an indicator of potential bullish momentum.
I created a very interesting custom pair chart for $PEPE that I think gives a tremendous amount of high time frame signal.
— Max (@MaxBecauseBTC) February 23, 2025
The black line is a ratio showing (% of Tokens Held by Whales➗% of Tokens Held by Retail)… More simply put…
Black Line Up = Whales Accumulating… pic.twitter.com/GkUdHe9oXO
If this pattern persists, PEPE could be positioning itself for a strong rebound in the near term, making its current levels a potential accumulation zone for opportunistic investors.
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) Holds Key Support, Is a Breakout to $0.21 Imminent?
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