TLDR
- Pepe coin (PEPE) surged 12-13% despite a 702.9 billion token dump by Wintermute
- PEPE’s price increase coincides with broader crypto market recovery
- On-chain data shows significant accumulation by some traders and whales
- PEPE was listed on Coinbase Futures, boosting its visibility and legitimacy
- Technical analysis suggests PEPE is near resistance levels with overbought signals
Pepe coin (PEPE), the popular meme cryptocurrency, has shown remarkable resilience in the face of what many would consider bearish market conditions. Despite a massive dump of 702.9 billion tokens by market maker Wintermute to Binance, PEPE has managed to surge by approximately 12-13% in the past 24 hours.
This price increase comes as a surprise to many investors and analysts, who typically expect such large-scale selling to negatively impact a token’s value. However, PEPE’s rally coincides with a broader recovery in the cryptocurrency market, suggesting that overall positive sentiment may be outweighing the effects of the token dump.
On-chain data reveals interesting dynamics at play. While Wintermute offloaded a significant amount of PEPE, other traders and whales seem to be accumulating the token.
A smart money address identified as 0xa14, known for its 100% success rate in PEPE trading, has refrained from selling its 512 billion coins despite recent market volatility. This decision to hold onto PEPE has sparked optimism among investors about the token’s future potential.
Whale Alert reported a massive accumulation of 9 trillion PEPE, worth $83.25 million, by the address 0x88a14933 from Bybit. This substantial buy-in has created significant buying pressure, providing bullish support for the token’s price.
PEPE’s recent performance isn’t solely based on these large-scale transactions. The meme coin received a boost in legitimacy and visibility when it was listed on Coinbase Futures in April. This listing caused the value of PEPE to rise by more than 30% at the time, and continues to contribute to its market presence.
As of July 9, 2024, PEPE is trading at around $0.000009431, with a 24-hour trading volume exceeding $1.1 billion. This high trading volume indicates strong market interest and activity surrounding the token.
From a technical analysis perspective, PEPE is currently trading near its 50-day Simple Moving Average (SMA) of $0.000009802504, which represents a short-term resistance level. The token remains below its 100-day and 200-day SMAs, suggesting that a longer-term bullish reversal would require breaking through these levels.
The Stochastic Relative Strength Index (RSI) for PEPE stands at 88.43, indicating that the token may be approaching overbought territory. This could potentially lead to a price pullback in the near future.
Despite these mixed signals, the overall sentiment surrounding PEPE remains positive. The Chaikin Money Flow (CMF) index is above 0.2, suggesting strong inflows from large investors. If this bullish outlook persists, it could lead to further price increases.
PEPE’s ability to maintain support at the $0.000009 level will be crucial for any continued bullish momentum. A breakthrough above key moving averages could see PEPE target resistance at $0.000011 and beyond. Conversely, failure to break immediate resistance might result in consolidation or a pullback to lower support levels.
