Main Takeaways:-
- Pepe’s retail-led collection surged, but large investor movement and network growth continue to be muted.
- Liquidation clusters and the moving average crossover hinted that prices might keep going up in the short term.
- Pepe [PEPE] recorded a major collection event after a group of five wallets acquired 611 billion tokens worth about $4.28 million in under eight hours.
At the reporting time, the memecoin was trading at $0.00000711, surged 1.57% in the past 24 hours.
As expected, this focused buying sparked new talk about what PEPE might do next. But to understand the chances of a breakout, we need to take a closer look at both on-chain data and technical indicators.
As expected, this heavy buying started new discussions about what PEPE might do next. To understand if it could break out, we need to look more closely at data from the blockchain and market charts.
Retail Returns, But Where Are the Whales?
On-chain activity indicates that retail interest is slowly making a comeback.
In the last week, active accounts surged by 0.47%, indicating a moderate growth in network participation. However, new accounts declined by 6.78%, suggesting slow user expansion.
In addition, there was a 67.4% surge in transactions worth below $1, strengthening the concept that smaller traders are collecting.
On the other hand, increased trading activity like the $10k–$100k range dropped more than 23%, which suggests that whale involvement has not recovered significantly yet.
The volatility, which was extremely high before, has started to calm down.
With Chart Breakout and Reduced Volatility, Is PEPE Ready for Action?
Market fluctuations have calmed significantly in the past few days.
PEPE’s 30-day fluctuation decreased from 146.13% to 115.24%, indicating a change from high instability to more stable price activity.
This decrease usually happens before big price movements, as market pressure increases during periods of stability.
From a technical analysis, PEPE surpassed its recent downward channel and regained the $0.00000700 level. The 9-day and 21-day moving averages are getting closer and might cross each other soon, suggesting a possible upward trend.
Short-term resistance stood at $0.00000737. if this zone surrendered, $0.00000884 would be next in the sequence. On the other side, $0.00000698 stayed the crucial support, maintaining the upward bias as long as it stayed above.
Whale activity shows a combination of signs, both positive and negative. In the last 30 days, major holders’ contributions declined by 74.15%, showing decreased buying by large investors.
On the other hand, outflows also dropped quickly by 76.75%, indicating that whales are not withdrawing rapidly.
Over the past 90 days, money coming in dropped a little by 7.05%, while money going out went up by 22.24%. This suggests some investors are taking small profits, but they are not selling everything.
Are Leveraged Bears Setting Up PEPE’s Breakout?
In the financial contracts market, open interest dropped by 3.8% to $288.14 million, showing that traders are being careful and using less borrowed money.
On the other hand, liquidation heatmap data from Bitget shows lots of short positions being closed in large numbers between those price levels of $0.0000074 and $0.0000076.
If buyers succeed in driving the price past this area, forced buying could cause a strong price jump. This area with lots of liquidity might help push prices higher, as long as regular buying stays strong.
PEPE’s recent buying, price breakout, and lower price fluctuations show early signals of stability. However, the lack of whale activity and slower growth in new addresses suggest that overall confidence is weak.
If buyers rise above $0.0000076, supported by trading volume, an increase could follow. For now, PEPE looks slightly positive, but it needs more signs of support from big investors to confirm the trend.
Read also:- From the ‘Best Worst’ Quarter to Recovery: 4 Catalysts for Crypto in Q2
Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
