The daily chart of PEPE, the most popular emoji recently, has turned red after soaring in recent days. According to CoinMarketCap, the price of PEPE is down more than 5% in the past 24 hours. At the time of writing, it is trading at $0.00002433 with a market cap of just over $1 billion. Is this the end of the PEPE-led memecoin hype craze?
Whale activity soars
During this period when the price of memecoin was so high, some whales accumulated large amounts. For example, according to Lookonchain statistics, a whale purchased 962.3 billion PEPE (worth $2.46 million as of press time) using 70 WBTC and 470 ETH in the past 2 days, with an average purchase price of $0.000003122.
source: watch chain
During that time, PEPE’s achievements on the social front were also commendable. Santiment’s graph shows that PEPE’s social volume is very high in nature. Given peak-weighted sentiment, it is likely that most of the mentions involved are bullish.
Source: Santiment
Consequences of PEPE price drop
However, whales changed their minds during the price drop. Santiment’s graph shows an increase in the number of whale transactions during that time, indicating higher sales to those addresses. The supply of PEPE on exchanges has increased significantly in the past 24 hours.
Accompanied by the reduction in the supply outside the exchange, it is further evidence that the popular memecoin in the past few days is under selling pressure. However, it is reassuring to see less trading volume and lower prices.
Source: Santiment
market switch to PEPE discount
Looking at the 4-hour chart of PEPE, sellers are ahead of buyers. The Relative Strength Index (RSI) is falling and heading towards neutral 0. The Money Flow Index (MFI) is also in a similar direction.
Source: TradingView
The Bollinger Bands show that PEPE price is entering a less volatile zone, minimizing the chances of a sudden northward breakout in the near term.
PEPE can go farther if occur Model this
A widely followed strategist believes the PEPE memecoin could see more rallies if it continues to follow in the footsteps of tech stocks exploding during the Covid pandemic.
According to anonymous analyst Kaleo, PEPE’s recent gains are reminiscent of Zoom’s (ZM) price action in early 2020, when the tech stock soared more than 800% in less than 12 months.
According to Kaleo, Zoom was trading below cross resistance before the rapid rise, which he attributes to PEPE’s current market structure on shorter time frames.
“If I have the ability to hit the bottom in the market, I certainly have the ability to hit the top. The chart below compares ZM during the Covid bubble to PEPE now.
source: Carreo/Twitter
Kaleo continued to analyze that PEPE managed to break the cross resistance after hitting an all-time high of $0.00000431.
“Pepe out of here is really going to do it.”
source: Carreo/Twitter
Looking at Kaleo’s charts, he seems to see PEPE bouncing back closer to $0.000007 before peaking and reversing the trend.
Compared to its price at the time of writing, PEPE shows an upside potential of more than 130% if Kaleo’s target is met.
PEPE is the 42nd largest cryptocurrency by market capitalization and one of the most attractive altcoins to date. The memecoin has surged more than 5,330% from its all-time low of $0.00000055142 set on April 18.
DOGE and SHIB are also struggling
While the price of PEPE fell, other top meme coins like DOGE and SHIB continued to suffer. Their prices fell 2.7% and 4.4%, respectively, in 24 hours. At the time of writing, DOGE is trading at $0.075, while SHIB is trading at $0.00009021.
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Mingying
According to Kyptos
