Pepe price recently broke out of a bearish reversal pattern, signaling a further downtrend. The breakout lower also plugged 9% of PEPE holders back into losses as the total number of investors in profitability dropped from 67% on Friday to 58% on Monday. Nevertheless, recent strength in the market has created the possibility of a rebound for the asset, and PEPE whale activity was spotted increasing.
Is This the Last Accumulation For PEPE Price
While Pepe price struggles to remain above the 200-day Exponential Moving Averages (EMA) on the daily timeframe, it remains one of the strongest crypto assets aside from Bitcoin, maintaining around this key indicator even during the worst crypto crash yet in 2024.
The Pepe coin price dropped 5.8% in the last 24 hours to trade at $0.00000816, but that didn’t stop this smart whale from picking up more tokens.
A whale wallet identified as “cookislandstrust.eth” has bought over 420 billion PEPE ($3.41 million) in the last seven days and is over $913,000 in profit.
A whale named “cookislandstrust.eth” is trying to buy $PEPE at dip again!
In the past 7 days, the whale has spent a total of 3.13M $USDT to buy 420B $PEPE on 2 occasions, including the big dump on Aug 5 and 2 hours ago, now making $170K (+5.4%).
The whale also spent 7.05M $USDT… pic.twitter.com/QVnbW5AGYz
— Spot On Chain (@spotonchain) August 12, 2024
The smart investor bought a huge amount of PEPE tokens on two occasions: 300 billion PEPE on August 5 and another 120 billion on August 12, bringing the total to 420 billion tokens. This move comes on the heels of news that another whale recently offloaded 5,000 ETH, leading to speculation that these funds might be used to purchase meme coins such as SHIB and DOGE.
Futures Data Support Rebound
The PEPE open interest (OI) dropped 11.89% in the last 24 hours, which, combined with the falling price, signals that longs are potentially closing in a bid to cut losses.
The Long/Short ratio on Coinalyze increased in the last 24 hours, showing that Longs are closing in loss and Shorts are also closing in profits, which is why the OI is dropping. When Shorts close their positions, they buy, which is bullish for the underlying asset.
Conversely, the funding rate for PEPE is negative, which suggests that Shorts are paying Longs to remain open. Hence, despite the Shorts’ reduction in the L/S ratio metric, they are still currently more than the Longs.
This signals that the PEPE price may continue moving downward in the short term until it hits the potential rebound zone.
PEPE Price Forecasts Steep Correction
Diving into the technical analysis, the overall trend is downward, as indicated by the price consistently trading below the 50-day (green) and 200-day (black) EMA.
Pepe sports a key resistance level around $0.00000846, close to the 50-day EMA. Conversely, the immediate support is at $0.00000610, as indicated by the horizontal line in the chart. This level also aligns with the projected price drop shown by the arrow.
The Pepe price chart displays a bearish pattern forming after the completion of the rising wedge, which typically signals a reversal to the downside. The last few candles show rejection at higher levels, confirming bearish sentiment.
The Relative Strength Index (RSI) is 41.95, indicating that the asset is approaching oversold territory but isn’t quite there yet. There’s still room for the price to drop further. The Chaikin Money Flow (CMF) is at -0.21, reflecting negative money flow, meaning selling pressure is currently dominant.
PEPE Price Analysis Chart
If the price rises above the 50-day and 200-day EMAs, it would be a clear reversal signal. If there’s a strong bounce, combined with increasing volume and RSI moving out of the oversold zone, the next bullish target could be at $0.00001200.
Frequently Asked Questions (FAQs)
The PEPE price dropped by 5.8% in the last 24 hours, trading at $0.00000816. Despite this decline, the whale’s investment indicates confidence in a potential rebound.
A reversal may be signaled if PEPE rises above the 50-day and 200-day EMAs. A strong bounce with increasing volume and an RSI moving out of the oversold zone could indicate a bullish trend, potentially targeting $0.00001200.
On-chain metrics show a drop in PEPE open interest (OI) by 11.89% in the last 24 hours, signaling that shorts are closing. The Long/Short ratio has increased, suggesting more investors are betting on a price rise.
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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.