As PEPE broke away from the market's overall pessimism, its price increased 25% in the last day.
On Monday, the PEPE network had a weekly high volume of whale transactions reaching $121 million.
As the price of PEPE gets closer to the $0.000025 resistance level, technical indications indicate that the positive momentum can diminish.
PEPE's price decoupled from the wider crypto market's year-end volatility and jumped 25% in the previous 24 hours. Is the $0.000025 resistance level too high for PEPE to overcome, given that whales are reportedly going on a last-minute purchasing spree?
A 25% surge in PEPE pricing separates it from the crypto market's decline.
Amidst the extreme volatility that characterised the last trading hours of 2024 on the global cryptocurrency exchanges, PEPE stood out as the top performer.
Despite the downturn, Ethereum is still battling around $3,300 while Bitcoin is trapped around $95,000, unable to regain important psychological milestones.
Similarly, memecoins like as Shiba Inu (SHIB) and Dogecoin (DOGE) have seen losses in the double digits in the last seven days.
Despite the bleak outlook, the price of PEPE rose significantly on Tuesday.
On the last trading day of 2024, PEPE outperformed all 20 top-ranked cryptocurrencies with a 25% rise.
With a $8.3 billion market valuation and returns of 1,500% every year, PEPE is expected to finish 2024 as the third biggest memecoin project, behind DOGE and SHIB.
Speculators saw whales trade $121 million in a last-minute mad dash
Many are asking if Tuesday's 25% price jump in PEPE is sustainable or just a short-term spike caused by circumstances that won't last. A possible catalyst for the surge may have been an unexpected increase in whale trading activity on the PEPE network, as shown by on-chain data patterns.
On Monday, PEPE's network had a weekly high number of whale transactions totaling $121 million, as reported by on-chain analytics company IntoTheBlock.
This number signifies the PEPE blockchain's greatest level of activity from big wallets in more than a month.
It seems that significant investors are strategically building up their holdings, taking advantage of the market downturn and low liquidity, to push prices upward, based on the timing of these transactions.
The whale demand spike on Monday corresponded with a 25% increase in PEPE price in the previous 24 hours, but whether this demand will endure or whether the rally turns into a bull trap is still up in the air.
The $0.000025 Level Is a Big Obstacle for the PEPE Price
Technical indications indicate that the bullish momentum may encounter obstacles as the price approaches the $0.000025 resistance level, notwithstanding the strong recent increase of PEPE.
At this price zone, bears traditionally set up a strong sell-wall when the market crisis started in mid-December.
On the daily timescale, the Moving Average Convergence Divergence (MACD) indicator indicates that there is low enthusiasm for price appreciation.
Low trading volume and poor demand to support further upward movement are suggested by the histogram's shallow peaks, even if the MACD line has crossed above the signal line.
Bitcoin and Ethereum are having trouble holding important levels, and other memecoins like SHIB and DOGE are still negative, so this fits in with the overall market trend.
Equally indicative of no change in direction is the Relative Strength Index (RSI), which is now at 53.08.
The relative strength index (RSI) has not yet entered overbought area, indicating that the rally does not have the usual strong momentum to overcome substantial resistance levels, even if this level does allow for more upward movement.
The next objective is $0.000030, and a wider bullish trend might be initiated if the PEPE price surge surpasses $0.000025.
Resumption of whale activity or widespread changes in market opinion would be necessary for such a move to occur.
This scenario seems less probable in the immediate future, however, when taking into account the weak MACD momentum and PEPE's surge against wider market trends.
If the $0.000025 resistance level is not achieved, a consolidation period is anticipated to ensue. Retesting $0.00002006 and maybe falling further to $0.00001846, where the lower Donchian Channel border might provide a safety net, could be the outcome of a rejection at this level.
If the price drops below $0.00001846, the present bullish structure will be rendered useless, and a drop below $0.00001441 might be in store.