Numerous Doge lovers have touted Pepe as the next big thing in the meme coin market, even going so far as to predict that it could outperform the original meme coin, Dogecoin, in the upcoming bull market. However, the latest shifts in fund withdrawals from the multi-sig wallet have cast doubts on this theory for some investors. As a result, Pepe experienced a significant decline today, leading to increased whale activity. The surge in large transactions now appears to be bullish for Pepe’s rebound from its recent slump.
Whales Continue To Buy PEPE Near The Dip
Pepe’s price plummeted almost 20% amid concerns of a potential “rug pull” following recent multi-sig wallet adjustments and token transfers. The downturn coincided with the transfer of $16 million in Pepe tokens from the developers’ multi-sig wallet to multiple crypto exchanges.
As PEPE hit its lowest point, whales began accumulating the token from the dip, anticipating profits in the next bull market. Data from IntoTheBlock shows a sudden surge in large transactions, with the count rising from 41 to 132. This suggests that whales are actively engaging with PEPE’s recent downturn, serving as a catalyst for its price recovery.
Additionally, the volume of large transactions (>$100,000) has experienced a significant increase, jumping from $10.67 million to $98.4 million. This suggests a shift in sentiment among whales in response to the recent market selloff.
According to Lookonchain, a holder of PEPE tokens invested 320 Ethereum, worth approximately $529,000, to purchase 640 billion PEPE tokens. This move may have been motivated by the recent dip in PEPE’s price following a substantial sell-off. The meme token saw a spike in selling activity, which could have been the catalyst for the whale’s quick action.
What’s Next For Pepe’s Price?
Pepe token experienced a bounce back from its $0.00000078 support level, signaling that bullish investors are entering during price dips. As of writing, Pepe trades at $0.00000086, declining over 16% in the last 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 strongly defend this level. If the price declines upon hitting 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 decline below the support line at $0.00000078 will strengthen sellers’ confidence, potentially sending the Pepe price toward a severe decline.
For a stronger bullish comeback, buyers will need to push the price beyond the immediate resistance at $0.00000115 and moving averages. If the price successfully holds upward momentum and breaks above the resistance line, Pepe might surge to $0.00000171.