PEPE Price Plunges: Hold or Fold? The End of a Bullish Rally?

• Pepe Coin’s price surged in May but has dropped 5% recently, now standing at $0.0000144.

• A whale recently acquired billions of Shiba Inu tokens, showing confidence in meme-based investments.

PEPE coin has recently experienced significant price volatility and trading activity, sparking interest among investors.  In the last 24 hours, PEPE traded between $0.00001402 and $0.00001537, representing a 14% reduction from its all-time high of $0.00001718, which reached May 27. Over the past seven days, PEPE has surged by 6%. It has also surged by 65.64% over the last month. Currently, PEPE is priced at $0.00001469, reflecting a 2% increase in the last 24 hours.

PEPE’s 24-hour trading volume remains robust, indicating sustained interest in this meme coin. Typically, the trading volume hovers around $800 million, but it has now surged to $1.23 billion. This spike suggests heightened market activity and investor interest.

The trading volume for Pepe Coin surged 27% compared to the previous year. This rise in trading volume reflects growing interest and demand for cryptocurrency among investors, even as the market faces fluctuations. The ratio of trading volume to market capitalization stands at 20.56%, indicating a high level of liquidity and sustained investor activity in the market.

Drawing on Crypto News Flash’s previous insights, the significant surge of Pepe meme coin over recent months has largely stemmed from institutional investors’ backing. Additionally, PEPE has amassed over $60 million in liquidity across various decentralized exchanges (DEXs), facilitating smooth trading.

Whale Acquires Billions of PEPE and SHIB

On-chain insights provided by ‘The Data Nerd’ indicate that a whale, identified as wallet address 0xa14, withdrew 199 billion PEPE, worth $2.9 million, from Binance, the world’s leading crypto exchange. Additionally, the same wallet withdrew 37 billion SHIB, valued at $964,000, from Binance in a separate transaction.

12 hours ago, a whale 0xa14 just withdrew 199B $PEPE ($2.9M) and 37B $SHIB ($964k) from #Binance.

Within 5 days, he totally withdrew 349B $PEPE (~$5.21M) from Binance.

Just now, 82% of his portfolio are $PEPE (~$10.4M) and $SHIB (~$9.66M).

Address:https://t.co/zqMBxV9Mle pic.twitter.com/eh0rUHPUO4

— The Data Nerd (@OnchainDataNerd) June 6, 2024

Over the past five days, the whale has accumulated a total of 349 billion PEPE, valued at $5.21 million. This significant acquisition has resulted in PEPE comprising 82% of the whale’s portfolio, totaling $10.4 million. The remaining holdings include Shiba Inu, which amounts to $9.66 million. This data highlights the whale’s confidence in these meme-based investment products.

Data from Coinglass shows a significant increase in futures open interest (OI) for PEPE at $183.03 million. This surge in futures OI underlines the heightened investor enthusiasm for these assets, adding to the optimistic sentiment surrounding them.

Technical Analysis: Mixed Signals

Technical indicators point to continued bearish momentum in PEPE’s short-term price movements. The Relative Strength Index (RSI) is at 60, indicating a moderately strong momentum but not overbought. The price has shown substantial growth since February, reaching peaks around mid-April and mid-May. 

The Moving Average Convergence Divergence (MACD) indicator has also recently shown a bearish crossover, with the MACD line dropping below the signal line. This bearish signal suggests that PEPE might experience a further downtrend in the coming days. If PEPE embarks on another rally in June 2024, as anticipated, the current all-time high of $0.000017 will be the primary short-term resistance level to overcome.