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Highlights
- Pepe price looks to shed 21% gains before rallying higher.
- Smart whale picked up $3.13M worth of PEPE tokens over the past week.
- Volume-Price bullish divergence predicts bullish reversal soon.
Pepe price recently broke out of a bearish reversal pattern, signaling a further downtrend. The breakout lower also plugged 9% of PEPE holders back into losses as the total number of investors in profitability dropped from 67% on Friday to 58% on Monday. Nevertheless, recent strength in the market has created the possibility of a rebound for the asset, and PEPE whale activity was spotted increasing.
Is This the Last Accumulation For PEPE Price
While Pepe price struggles to remain above the 200-day Exponential Moving Averages (EMA) on the daily timeframe, it remains one of the strongest crypto assets aside from Bitcoin, maintaining around this key indicator even during the worst crypto crash yet in 2024.
The Pepe coin price dropped 5.8% in the last 24 hours to trade at $0.00000816, but that didn’t stop this smart whale from picking up more tokens.
A whale wallet identified as “cookislandstrust.eth” has bought over 420 billion PEPE ($3.41 million) in the last seven days and is over $913,000 in profit.
A whale named “cookislandstrust.eth” is trying to buy $PEPE at dip again!
In the past 7 days, the whale has spent a total of 3.13M $USDT to buy 420B $PEPE on 2 occasions, including the big dump on Aug 5 and 2 hours ago, now making $170K (+5.4%).
The whale also spent 7.05M $USDT… pic.twitter.com/QVnbW5AGYz
— Spot On Chain (@spotonchain) August 12, 2024
The smart investor bought a huge amount of PEPE tokens on two occasions: 300 billion PEPE on August 5 and another 120 billion on August 12, bringing the total to 420 billion tokens. This move comes on the heels of news that another whale recently offloaded 5,000 ETH, leading to speculation that these funds might be used to purchase meme coins such as SHIB and DOGE.
Futures Data Show Pepe Can Rebound
The PEPE open interest (OI) dropped 11.89% in the last 24 hours, which, combined with the falling price, signals that longs are potentially closing in a bid to cut losses.
The Long/Short ratio on Coinalyze increased in the last 24 hours, showing that Longs are closing in loss and Shorts are also closing in profits, which is why the OI is dropping. When Shorts close their positions, they buy, which is bullish for the underlying asset.
Conversely, the funding rate for PEPE is negative, which suggests that Shorts are paying Longs to remain open. Hence, despite the Shorts’ reduction in the L/S ratio metric, they are still currently more than the Longs.
This signals that the PEPE price may continue moving downward in the short term until it hits the potential rebound zone.
PEPE Price Forecasts Steep Correction
Diving into the technical analysis, the overall trend is downward, as indicated by the price consistently trading below the 50-day (green) and 200-day (black) EMA.
Pepe sports a key resistance level around $0.00000846, close to the 50-day EMA. Conversely, the immediate support is at $0.00000610, as indicated by the horizontal line in the chart. This level also aligns with the projected price drop shown by the arrow.
The Pepe price chart displays a bearish pattern forming after the completion of the rising wedge, which typically signals a reversal to the downside. The last few candles show rejection at higher levels, confirming bearish sentiment.
The Relative Strength Index (RSI) is 41.95, indicating that the asset is approaching oversold territory but isn’t quite there yet. There’s still room for the price to drop further. The Chaikin Money Flow (CMF) is at -0.21, reflecting negative money flow, meaning selling pressure is currently dominant.
If the price rises above the 50-day and 200-day EMAs, it would be a clear reversal signal. If there’s a strong bounce, combined with increasing volume and RSI moving out of the oversold zone, the next bullish target could be at $0.00001200.
Frequently Asked Questions (FAQs)
1. How has the PEPE price performed recently?
2. What could signal a reversal in PEPE's price trend?
3. What do on-chain metrics indicate about short-term price movements?
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