The meme coin market has seen a strong recovery due to increased buying demand in the cryptocurrency market. As Bitcoin price aims to surpass $65,000, Pepecoin is trending strongly towards its previous all-time high. However, with the recovery slowing, analysts are starting to worry about the possibility of a pullback.
Interest in Pepe's whales soars
Pepe, a meme coin, now has a market capitalization of $4.6 billion. Over the past 24 hours, its trading volume increased to $3.6 billion, a growth of over 2%, despite market fluctuations. According to CoinMarketCap, Pepe ranks 23rd in the crypto market.
This current uptrend around the new ATH is expected to continue for several days due to increased trading activity. According to data from IntoTheBlock, the large transaction for Pepe rose from the low of 134 tx to 728 tx, triggering a rise of over 443%. This strengthened the buying sentiment around each support line.
Despite this, the volatility measure has not increased and continues to decline up to 125%. This could create opportunities for a bearish pullback from the recent high.
The recent rise of the Pepe coin has highlighted a significant profit being made by a whale. The whale, using the address 0xe7d0, accumulated $13.9 million in three months. From December 2023 to February 2024, this whale invested 1.56 million US dollars to acquire 1.40 trillion PEPE.
Read also : Incredible gains from $PEPE: an investor turns $3,000 into $46 million!
Recently, they sold 140.4 billion PEPE for 1.75 million DAI, recouping their initial investment as the coin hit an all-time high today. The address now holds 1.26 trillion PEPE, currently valued at $13.9 million, representing pure profit. If the address chooses to liquidate all holdings, we could see a strong rejection in Pepe's price, leading to a sudden decline.
What's next for Pepe Price?
Pepe price is currently seeing a burst of bearish pressure after witnessing a sell-off around the recent high $0.0000116. The price is attempting to move below the EMA20 trendline to validate a clear trend. At the time of writing, Pepe's price is trading at $0.0000102, down more than 1.5% in the last 24 hours.
The buyers are trying to keep the price above the 20-day EMA ($0.00001). If successful, the PEPE/USDT pair could reach a high of $0.0000116. This is a crucial level for bears to defend, as a rally above it could pave the way for an increase to the overhead resistance zone between $0.000015 and $0.000017.
Conversely, a breakout and close below the $0.00001 to $0.000008 support zone will complete a downtrend. The pair could then fall to the strong support of $0.0000055. As the RSI level is now declining sharply towards the midline, the bears currently have the advantage of dominating the price chart.
Over a 1-hour time frame, Pepe's long/short ratio has increased and is currently trading at 1.1839. This suggests that more than 54% expect a bullish reversal.