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- A Pepe whale transferred 2.1 trillion tokens worth $52 million after 600 days of dormancy.
- Pepe has made a moderate recovery on its price charts, rising by 3.78%.
Since hitting $0.00002836, Pepe [PEPE] has struggled to maintain an upward momentum. As such, the memecoin has retraced to hit a local low of $0.00002164. However, the memecoin has attempted to recover on its price charts since then.
At the time of writing, Pepe was trading at $0.00002423, marking a 3.78% increase on daily charts.
Pepe’s sustained upswing has led to increased whale activity. Some whales are attempting to capitalize on the recent rally, while others are continually accumulating, hoping for more gains.
Pepe whale offloads 2.1 trillion tokens
According to Lookonchain, A Pepe whale that had been dormant for 600 days, has transferred all 2.1 trillion tokens worth $52 million to a new address.
This whale, who is an early Pepe holder, spent only 0.0135 ETH worth $27 to purchase these tokens. Since then, this whale has held onto the assets until now.
This transaction might have two major implications. Firstly, if the transfers result in sending the total amount to exchanges in preparation for selling, it could result in higher selling pressure. Secondly, if this whale is reorganizing to store in more secure cold storage, it’s a bullish signal.
Impact on price charts
Overall, PEPE was experiencing a short-term bearish sentiment from both whales and retail traders.
Source: IntoTheBlock
For example, Pepe’s large holders’ inflow has decreased over the past week from 12.78 trillion to 5.48 trillion. This suggests that whales are reducing their capital inflow into the memecoin. When large holders decrease their funds’ inflow, it indicates a lack of market confidence.
Source: TradingView
Additionally, this bearish trend was evidenced by a decline in the Relative Strength Index (RSI). The memecoin’s RSI has decreased, implying reduced buying pressure as the market corrects after the recent rally.
At 58, the RSI indicates that both sellers and buyers are still battling for market control.
What next for the memecoin?
According to AMBCrypto’s analysis, the memecoin was experiencing a market correction following a rally, resulting in short-term bearish sentiment. However, fundamentals are strengthening, and bearish sentiments could be short-lived.
Source: Santiment
Despite the short-term price weakness, the memecoin’s Adjusted Price DAA Divergence remained positive over the past week. This indicates that fundamental metrics such as network activity are improving. Therefore, this divergence signals potential price growth in the near term.
Read Pepe’s [PEPE] Price Prediction 2024–2025
Given the long-term bullish sentiment, Pepe could see more gains and reclaim the $0.0000256 resistance level in the short term.
However, if bearish forces prevail, the price could drop to $0.00002319.
