Numerous Doge aficionados have touted Pepe as the next big thing in the meme coin market, going so far as to predict that it could outperform the original meme coin, Dogecoin, in the coming bull market. However, the latest shifts in the withdrawal of funds from the multi-sig wallet have cast doubt on this theory among some investors. As a result, Pepe experienced a significant drop today, leading to an increase in whale activity. The surge in large transactions now appears to be positive for Pepe’s recovery from the recent slump.
Whales continue to buy PEPE near the dip
Pepe’s price fell nearly 20% on concerns of a possible “back pull” following recent multi-sig wallet adjustments and token transfers. The downturn coincided with the transfer of $16 million worth of Pepe tokens from the developers’ multi-sig wallet to multiple crypto exchanges.
When PEPE bottomed out, whales began to collect the token from the dip, anticipating gains in the next bull market. Data from IntoTheBlock shows a sudden surge in the number of large transactions, with the number rising from 41 to 132. This suggests that whales are actively involved in PEPE’s recent downturn and are serving as a catalyst for the price recovery.
In addition, the volume of large transactions (>$100,000) increased significantly, from $10.67 million to $98.4 million. This indicates a shift in whale sentiment in response to the recent market sell-off.
According to Lookonchain, a holder of PEPE tokens invested 320 Ethereum, worth about $529,000, to buy 640 billion PEPE tokens. This move may have been prompted by PEPE’s recent price drop following a significant sell-off. The meme token saw a spike in sales activity, which could have been the catalyst for the whale’s swift action.
What’s next for Pepe’s Price?
The Pepe token rebounded from the USD 0.00000078 support level, indicating bullish investors are entering during price declines. At the time of writing, Pepe is trading at $0.00000086, down more than 16% in the past 24 hours.
The bulls are currently trying to initiate a short-term rally that could potentially reach the 20-day EMA at $0.00000101. However, sellers are expected to vigorously defend this level. If the price falls on reaching the EMA20 level, it would imply that the Pepe sellers are still in the game, waiting for the perfect opportunity to open short positions.
A drop below the support line at $0.00000078 will bolster seller confidence, potentially steering the Pepe price towards a serious decline.
For a stronger bullish comeback, buyers will need to push the price past the USD 0.00000115 immediate resistance and moving averages. If the price successfully maintains upward momentum and breaks above the resistance line, Pepe could rise to $0.00000171.