On September 21, PEPE’s price took a nosedive, reaching an all-time low of $0.00000061 since its peak. However, it has since embarked on a remarkable rebound, surging by 37% to its current value as of September 29, at $0.00000082.
Over the past 24 hours alone, the price has experienced a 12% surge, with no signs of slowing down. The last time we witnessed such impressive weekly growth was back in June during a substantial recovery phase. Now, as PEPE approaches a critical resistance point, the question arises: Is it poised for a breakout that could mark the beginning of a new uptrend? What factors are fueling this surge?
Since August, a crypto whale has been on a buying spree, accumulating trillions of PEPE tokens. According to a recent report from the on-chain analytics service Lookonchain, a prominent whale acquired an astonishing 1.04 trillion PEPE tokens just last month.
Yesterday, PEPE experienced a 24-hour low, with its value briefly dropping to around $0.0000007105. Insights from Lookonchain indicate that during this price dip, the crypto whale may have seized an opportunity, investing 390 Ethereum (ETH) to expand their PEPE holdings just hours before.
According to data from IntoTheBlock, there is compelling evidence of whale accumulation. Over the past 30 days, we’ve observed a notable surge in both whale and investor coin acquisitions, with whale holdings (those with over 1% of the total supply) increasing by 3.65%, and investor holdings (those with holdings between 0.1% and 1%) rising by nearly 5%. In stark contrast, retail interest (comprising less than 0.1% of the circulating supply) has waned, declining by 9.56%.
As these data trends suggest, whales have evidently capitalized on the recent price dip, actively accumulating the coin. Could this accumulation by the whales potentially trigger a significant price surge?
After reaching its all-time high of $0.0000045 on May 5, 2023, the price embarked on a corrective phase. Initially, it experienced a downtrend, touching $0.00000082 on June 15, marking the first wave of correction. Subsequently, a recovery ensued, pushing the price to $0.00000187 by July 3. This marked the second wave in a corrective WXY count, setting the stage for the next downtrend, ultimately leading to a lower low of $0.00000061 on September 21.
There’s a compelling case to be made that the recent price action marks the completion of the third wave, denoted as ‘Y.’ This perspective gains credence with each subsequent price increase. As mentioned earlier, the price has now reached a significant horizontal level, originally formed during the prior macro low point in mid-June.
This level’s significance lies in its history as support, albeit a solitary instance. What adds weight to its importance is its convergence with a descending trendline, stemming from the all-time high, a trendline that has consistently held as a notable marker.
Should the price breach this pivotal juncture, it could signify that the low point observed on September 25 is behind us, and a new uptrend may have initiated. However, it’s worth noting that this doesn’t necessarily imply the conclusion of the entire corrective phase. It’s entirely plausible that we might witness the extension of the correction with the emergence of two additional waves: a second wave, ‘X,’ followed by another downward movement, labeled as ‘Z.’
In this scenario, the current upward trajectory could culminate as a lower high relative to the peak reached on July 3, preceding another downturn leading to a new low, potentially lower than that of September 25.
PEPE has been displaying bullish signals, and as the price continues its upward trajectory, it hints at the possibility of a new, more substantial uptrend taking shape. To confirm this, however, the price must sustain its movement beyond the critical resistance point of $0.00000085.
Whales have been notably active in driving up the price, a trend substantiated by on-chain data. If retail investors join the fray, their collective buying power could potentially breach the aforementioned resistance. While we cannot assert with certainty whether this would propel the price to a new all-time high, it undoubtedly signifies the potential for a sustained uptrend in the near future.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.