PEPE’s price hit a record high on May 27, driven by the approval of key Ether ETF filings in the U.S.
The price surged by 7.60%, reaching $0.00001725, an 88% increase since the SEC approved the ETF filings.
Despite the surge, PEPE’s technical outlook remains bearish due to large investors’ ongoing profit-taking.
Pepe ($PEPE )’s price action has been nothing short of spectacular. On May 27, PEPE’s price rose to a record high, driven by the recent approval of key Ethereum exchange-traded fund (ETF) filings in the U.S. However, investors fear that the price might consolidate before making any further gains.
PEPE’s price surged by 7.60%, reaching an all-time high of $0.00001725, according to data from CoinGecko. This is an impressive 88% increase since the U.S. Securities and Exchange Commission (SEC) approved the Ether ETF filings on May 20.
Investors Take Massive Profits
During the market uptrend, the supply of PEPE held by entities with balances exceeding 1 billion tokens has decreased. This indicates that these “whales” have been selling at local price peaks. Consequently, the supply of PEPE held by smaller investors has increased.
Despite this selling pressure, some traders have chosen to withdraw millions of dollars worth of PEPE tokens from exchanges after the latest price pump. A smart trader turned an initial investment of $250,000 into a jaw-dropping $2.42 million.
According to Lookonchain, a blockchain tracking avenue, the trader purchased 160.62 billion PEPE tokens on December 6 and 7, 2023. This acquisition paid off handsomely when the trader sold all holdings for 644 ETH, valued at approximately $2.42 million. The impressive feat represents an 867% return on investment (ROI).
There Are Risks of Consolidation
PEPE is currently oscillating around its moving averages, with both the 50-period (blue line) and 200-period (red line) moving averages weaving closely together, indicating an incoming consolidation. The Relative Strength Index (RSI) is 54.29, which is relatively neutral and suggests a lack of strong momentum either upward or downward.
Price action between the support level at 0.00000165 and resistance near 0.00000172 has been quite tight, indicating a consolidation pattern where Pepe is currently trading within a narrow range. Investors should watch out for a breakout above the resistance level. But for now, PEPE appears to be at risk of continued consolidation as it looks for direction amidst balanced pressures from both the bears and the bulls.
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