Pepe Coin price suffered over the weekend as it dropped below a crucial support level. Nevertheless, whale activity increased as an on-chain analytics firm noticed some large investors from Kraken picking billions of PEPE. Could they have some insight into the future PEPE? Technical analysis reveals they may be onto something, as the completion of this pattern could catapult Pepe 200% into the price discovery zone.
$6.18M Whale Accumulation Impact on Pepe Coin Price
Lookonchain, a blockchain analytics firm, discovered two wallets that withdrew 828.64 billion PEPE ($6.18 million) from the Kraken exchange on August 18.
2 wallets(likely belonging to the same person) withdrew 828.64B $PEPE($6.18M) from #Kraken 8 hours ago.
This whale sold 500B $PEPE 3 days ago at $0.000008 and bought 828.64B $PEPE at the lower price of $0.0000074.
The whale now holds 1.33T $PEPE($9.93M) but still loses $3.3M on… pic.twitter.com/P4AZmYfASY
— Lookonchain (@lookonchain) August 18, 2024
The wallet address, suspected to belong to the same person, now holds 1.33 trillion PEPE ($9.93M). Meanwhile, Ethereum whales are doing the exact opposite, including Ethereum founder Vitalik Buterin, who transferred 400 ETH ($1.05M) through a crypto mixer.
The pattern of reducing PEPE exchange reserves is evident across many other CEXs, not just Kraken.
Data from Coinglass shows the net exchange inflow for PEPE was negative for five days in a row, signaling that investors are anticipating Pepe Coin price to rise higher.
PEPE Spot Inflow/Outflow
Over the last 24 hours, Binance has had the largest net exchange flow of PEPE of up to $9.49 million, which shows the increased bullish sentiment, which may be explained in the PEPE technical analysis.
PEPE Unseen 200% Bullish Setup
PEPE price is trending downward, indicating a bearish market sentiment. The price has been consistently making lower highs and lower lows, but since August 16, there seems to be support forming that may turn the tables around for PEPE.
The recent candles exhibit small body candlesticks near $0.00000700 support, indicating indecision and a possible weakening of selling pressure.
If Pepe Coin price sustains above this support level and begins rising higher, it may complete a double-bottom pattern, which is a bullish reversal market structure. If that happens, the price of PEPE may surge 78% to $0.00001600.
Additionally, PEPE current support level coincides with the 0.618 Fibonacci retracement level, which further strengthens this zone.
A bounce from the 61.8% Fib retracement level could catapult PEPE to the 0.27 Fib extension level around $0.00002250, which is more than a 200% (4X) increase from the current price.
The moving average convergence/diverge (MACD) line is below the signal line, and both are in negative territory. This indicates a continuing bearish momentum, though the histogram bars are showing signs of possible weakening bearish momentum.
Pepe price analysis chart
If PEPE bulls lose this level of bears it will be a show of great weakness and may invalidate the current bullish thesis. The Pepe Coin price may drop lower to test the next lower support level around $0.00000475, a 35% drop from the current price.
Frequently Asked Questions (FAQs)
On August 18, two wallets withdrew 828.64 billion PEPE ($6.18M) from Kraken, now holding 1.33 trillion PEPE ($9.93M). This large accumulation suggests a bullish outlook for Pepe Coin.
The drop in PEPE reserves across exchanges, including Kraken, and the negative net inflow over the past five days suggest investors are holding coins, anticipating a price increase.
Pepe Coin price is testing historical support levels, including the 61.8% Fibonacci retracement, which may indicate future price movements and potential reversals.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.