Whale swarms around PEPE: How did the memecoin react?

• Pepe surged by 117. 80% over the past thirty days.
• A new whale accumulated 309.6 billion tokens worth $6.45 million.

After Coinbase listed Pepe [PEPE] nine days ago, the memecoin surged to a new ATH of $0.00002524, continuing its monthly bullish trend with a 117.80% increase.

Since then, PEPE declined to a low of $0.00001807. This dip created a buying opportunity for retailers and whales alike. Whales are now buying the dip, anticipating further price gains.

Pepe whale accumulates 309.6B tokens

According to the on-chain tracker SpotOnChain, a new whale has entered the market to make a big purchase. This whale created a wallet over the past hours and withdrew 309.6 billion Pepe tokens worth $6.45 million from Kucoin.

When whales accumulate, it signals confidence in the market direction. Equally, such huge funds inflow creates buying pressure, which potentially leads to price appreciation.

Impact on Pepe’s charts?

As expected, Pepe has surged by 1.85% over the past day. Before this, the memecoin had been on a downward trajectory, dipping by 1.40% on weekly charts.

While, since the memecoin had dropped from a high of $0.0000218 to $0.0000198, it’s right to say, that bulls are trying to regain control.

However, other market indicators suggested that the memecoin could see some more decline before these bulls regain control.

Source: TradingView

For instance, Pepe’s Relative Strength Index (RSI), which had hit overbought territory a week ago, was declining and sat at 70. This level is still overbought, and the market is likely to face correction.

This was visible as the memecoin’s Moving Average flipped to 74.

Additionally, the memecoin’s ADX showed that the uptrend was exhausting, and the downward momentum was building. This has surged from 35 to 42, signaling that sellers were dominating the market.

Source: Santiment

Pepe’s NVT Ratio (with circulation) surged from 41.89 to 89.45. This high NVT ratio suggested Pepe may be overvalued, as its price growth isn’t matched by network activity.

Thus, the price increase isn’t accompanied by meaningful growth in on-chain activity, often signaling speculation rather than utility.

Source: IntoTheBlock

We can see this lack of utility and reduced on-chain activity through reduced active addresses. According to IntoTheBlock, active addresses have dipped from 23.63K to 15.16K over the past week.

Such a sharp decline in address suggested reduced participation, indicating that the price rally is not supported by fundamentals.

The memecoin’s next move

Simply put, although the memecoin has made moderate gains on daily charts amidst this whale accumulation, the memecoin is still in a corrective wave.

Therefore, the current conditions could see Pepe decline. If so, the memecoin could drop to $0.000018 and might decline further to see support around $0.00001578.

Read Pepe’s [PEPE] Price Prediction 2024–2025

Subsequently, if the attempt by whales results in considerable buying pressure, Pepe could reclaim $0.000022.

A breakout from here could see the memecoin hit a new ATH, since resistance above here is insignificant.