Pepe Coin Price Analysis As Trading Volume Plunges 20% To $742M, Is 2024 Bull Run Over?

Pepe Coin Price Analysis: Since last weekend, Bitcoin has been in a consolidation phase, facing challenges in maintaining a position above the psychological threshold of $65,000. This stagnation in Bitcoin’s recovery has impacted several altcoins, including the Pepe coin, which has pulled back from its resistance level of $0.00000920. 

Over the past three days, Pepe coin has seen a 10% decline in value. However, the decrease in trading volume suggests a lack of conviction from sellers. Is a rally to $0.00001 high possible?

Also Read: Pepe Coin: Smart Money Buys 143 Bln PEPE, $0.00001 On The Horizon?

Whale Selling Sparks Concerns for Pepe Coin’s Bullish Momentum

Over the past three weeks, the Frog-themed memecoin— PEPE witnessed a steady recovery displayed through new higher low higher high formation in the daily chart. This bullish rally recorded around 113% growth as the price jumped from $0.00000393 support to a $0.00000918 high.

Amid this rally, the PEPE price developed a well-known bullish reversal pattern called the inverted head and shoulder pattern. This pattern commonly spotted at the market bottom signals a major change in trend dynamic and renewed accumulation from market participants.

On May 4th, the coin price gave a decisive breakout from the neckline at $0.000008 favoring buyers to drive a sustainable recovery. However, with the weekend consolidation in Bitcoin, the PEPE price shows a minor retest to the breached resistance, allowing buyers to showcase its sustainability for a higher rally.

In a recent event tracked by Spot On Chain, a significant PEPE cryptocurrency transaction occurred when a multisign wallet deposited 1.238T PEPE ($10.6M) into Binance, causing a 5.2% price drop. This whale held the PEPE for just three days and, if sold, earned a modest 1.28% profit ($134K). This rapid transaction raises speculation about potential insider knowledge influencing the sale.

3 hours ago, this multisign wallet deposited all 1.238T $PEPE ($10.6M) to #Binance, causing the price to drop abruptly by ~5.2%.

The whale held those $PEPE for only 3 days and would realize a small profit of only $134K (+1.28%) if truly selling.

Did the whale know something and… https://t.co/bUJ4A6lOx6 pic.twitter.com/iq89A3O4M7

— Spot On Chain (@spotonchain) May 7, 2024

Thus, with a bullish retest to $0.000008, the PEPE price is at the pivot level. Sustaining the recent breakout will drive a rally back to $0.000012.

On a contrary note, the whale selling hints at the possibility of a bearish breakdown which will invalidate the bullish thesis.

Technical Indicator

• Exponential Moving Average: The PEPE price jump above the daily EMAs (20 and 50) indicates a short-term trend returns to a recovery trend.
• Average Directional Index: An uptick in ADX slope at 17% accentuates the buyers have sufficient momentum to lead a higher rally.