Coinspeaker Pepe (PEPE) Price at Risk of Further Correction Despite Heightened Whale Accumulation
Amid the rising popularity of meme coins across different blockchains led by Solana (SOL), Ethereum (ETH), Tron (TRX), and BNB Chain, frog-themed Pepe (PEPE) has emerged as the top favorite among institutional investors and retail traders. The mid-cap meme coin, with a fully diluted valuation of about $3.3 billion and a daily average traded volume of around $1.4 billion, has more than 279K on-chain holders.
The meme coin has gained popularity among speculative traders due to its high liquidity of more than $35 million, which is locked through Ethereum-based smart contracts. Despite a rocky beginning, which saw a major disagreement between the founding team, the Pepe project has grown to a top-tier meme coin in the past year.
Whale Investors Buy More Pepe Tokens
Amid the low crypto bullish sentiment, long-term holders have seized the opportunity to accumulate more coins in preparation for the anticipated altseason. Furthermore, historical data shows that the crypto market often rebounds in the fourth quarter after a choppy August and September following Bitcoin’s halving event.
The upcoming US elections, amid anticipated interest rate cuts by the Fed to enable monetary quantitative easing, will trigger the much anticipated crypto bull run. Additionally, global liquidity has risen to an all-time high of above $95 trillion, signaling the onset of a major bull market ahead.
According to on-chain data analysis provided by Lookonchain, an address associated with Ceffu, an enterprise-grade custody and liquidity provider for institutional investors, purchased 1.48 trillion Pepe units, worth over $11.6 million, from the Binance exchange earlier today.
A wallet related to #Ceffu withdrew 1.48T $PEPE($11.6M) from #Binance just now.https://t.co/H9anq20RUY pic.twitter.com/TTq3BVtVoo
— Lookonchain (@lookonchain) August 29, 2024
The on-chain analytics firm also spotted another whale making a considerable Pepe purchase earlier today. Precisely, a crypto trader, who made $1.77 million from Pepe last year, spent $1.34 million in USDC to purchase more Pepe coins.
Bearish Sentiments
The rising demand for Pepe among institutional investors comes at a crucial moment, whereby the altcoin continues to face bearish sentiments. From a technical standpoint, Pepe price has been forming a possible head and shoulder (H&S) reversal pattern on the weekly time frame after reaching its all-time high in May.
Pepe price faces a major resistance level of around $0.0000092, coupled with a bearish divergence on the weekly Relative Strength Index (RSI). If Pepe’s price closes August below last week’s candlesticks, a bearish trend will be confirmed, with a midterm target of about $0.0000034, which coincides with the daily 1.618 Fibonacci Retracement.
On the other hand, a consistent close above the resistance level around $0.0000092 will propel Pepe’s price to a new ATH before the end of this year.
next
Pepe (PEPE) Price at Risk of Further Correction Despite Heightened Whale Accumulation
