The recent drop in the price of the popular memecoin PEPE was likely in preparation for a new wave of growth. However, the whale activity, which has historically generated upward momentum, hints at the potential start of a new rally.
Whales unload memecoin reserves
Selling an asset by large investors is usually considered a bad sign. However, in the case of PEPE, the opposite is true: the graph below shows that after a sharp drop in the balance of whales, the memecoin soared in price. According to analytics platform Santiment, the volume of coins at the largest non-exchange addresses has decreased by 2.5 trillion tokens worth about $20 million over the past 5 days. If history repeats itself, upward momentum could be just around the corner.
In addition, 79 trillion PEPE worth $623 million purchased in the range of $0.0000070 to $0.0000099 will become profitable once the price of memecoin reaches a new high. Since this is one of the largest parts of the offering, investors will likely hold off on selling.
PEPE price forecast: rally of 25% or higher
At the time of writing, PEPE is trading above the critical level of $0.0000077. Considering the above-mentioned factors, Memecoin could consolidate a breakout from the descending wedge, confirming $0.0000100 as support.
However, if the $0.0000077 level is lost, PEPE could fall to $0.0000063, refuting the bullish thesis.
About PEPE
The PEPE cryptocurrency at the beginning of May 2023 is in third place in terms of capitalization among all meme coins, according to Coingecko (second only to Dogecoin and Shiba Inu ). In addition, the token entered the top 50 most capitalized coins in a matter of days.
Meme coins are tokens and cryptocurrencies based on popular memes on the Internet and often promoted by influencers such as Elon Musk, who constantly pumps up Dogecoin with his tweets. Investors both like and dislike such tokens – on the one hand, you can make good money on them if you invest at the right time, but on the other hand, most often this is a real bubble, the coins have no real use behind them and can collapse at any moment. There was a hidden launch of PEPE without pre-sales.
There are concerns about the centralization of token issuance. Thus, at the moment, six wallets store PEPE tokens worth more than $250 million. True, most of these wallets are exchange wallets (Binance, KuCoin, MEXC, etc).
