Meme Coin Analysis: What’s Next for PEPE After Recent Accumulation?
Introduction to Recent PEPE Accumulation
A trader who previously made an 886% return from buying PEPE is purchasing the meme coin again. This trader had initially bought 170 billion tokens in October 2023. When they sold their holdings in July, they gained $1.77 million. The question now is whether this recent accumulation could yield similar results.
PEPE Big Players Reinvest in the Meme Coin
Earlier today, Etherscan data revealed that a market participant spent 1.34 million USDC to buy 173 billion PEPE tokens. Such large purchases often suggest a potential price increase may be on the horizon.
- Historically, PEPE's price tends to rise following large buys like this one.
- According to Lookonchain, a wallet linked to the crypto asset investment management firm Ceffu bought 1.48 trillion PEPE tokens valued at $11.6 million.
- This brings the total accumulated tokens to nearly 2 trillion in just one day.
Understanding PEPE’s Market Dynamics
Furthermore, Pepe’s adjusted price Daily Active Addresses (DAA) metric appears to support the idea that a significant price increase could be approaching. The DAA measures how frequently users engage with a cryptocurrency.
- An increase in DAA is generally seen as a bullish signal, indicating growing user participation.
- If the price of a cryptocurrency increases while user engagement falls, it typically signals that it might be time to sell.
- Pepe’s price has dropped by 32.94% over the last 30 days, indicating a potential bottom.
PEPE Price Prediction: The Race Back to $0.000012 Begins
PEPE’s price currently stands at $0.0000078. However, according to the daily chart, the token could trade higher as a new month approaches.
- The image below shows the formation of a falling wedge—a bullish pattern indicating a potential uptrend.
- PEPE bulls have to defend the support at $0.0000071 for continued upward momentum.
- An upper-level resistance at $0.0000095 must be breached to maintain the bullish outlook.
If successful, PEPE’s price could rally significantly, potentially reaching $0.000012. However, the token's inability to break above the resistance could invalidate this bull's thesis, possibly establishing a new low of around $0.0000067.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.