The price of Pepe Coin suffered over the weekend as it fell below a crucial support level. Still, whale activity increased as an on-chain analytics firm noticed some large investors on Kraken buying billions of PEPE. Could they have insight into PEPE’s future? Technical analysis shows they may be onto something, as the completion of this pattern could catapult Pepe 200% into price discovery zone.
Impact of $6.18 million whale accumulation on Pepe coin price
Lookonchaina blockchain analytics firm, discovered two wallets that withdrew 828.64 billion PEPE ($6.18 million) from the Kraken exchange on August 18.
2 wallets (probably belonging to the same person) withdrew 828.64 B $PEPE(6.18 million USD) from #Octopus 8 hours ago.
This whale sold 500B $PEPE Bought 3 days ago at $0.000008 and 828.64 billion $PEPE at the lower price of $0.0000074.
The whale now holds 1.33 T $PEPE($9.93 million), but still loses $3.3 million to … pic.twitter.com/P4AZmYfASY
— Lookonchain (@lookonchain) 18 August 2024
The wallet address, presumably belonging to the same person, now contains 1.33 trillion PEPE ($9.93 million). Meanwhile, Ethereum whales are doing the exact opposite, including the Ethereum founder Vitalik Buterin, who transferred 400 ETH ($1.05 million) via a crypto mixer.
The pattern of PEPE exchange rate reserve reduction can be seen on many other CEXs, not just Kraken.
Data from Coin jar shows that the net foreign exchange inflow for PEPE has been negative for five days in a row, suggesting that investors are expecting a further increase in the Pepe Coin price.
In the last 24 hours, Binance recorded the largest net exchange of PEPE amounting to $9.49 million, indicating an increasingly bullish sentiment that may be explained by PEPE’s technical analysis.
PEPE Unseen 200% bullish setup
PEPE price is trending downwards, indicating a bearish market sentiment. The price has been making lower highs and lower lows consistently, but since August 16, a support seems to be forming that could turn the tide for PEPE.
The recent candlesticks show small candle bodies near the $0.00000700 support, indicating indecision and a possible easing of selling pressure.
If the Pepe Coin price stays above this support level and starts to rise, it can complete a double bottom pattern, which is a bullish reversal market structure. If that happens, the price of PEPE can increase by 78% to $0.00001600.
Moreover, PEPE’s current support level coincides with the 0.618 Fibonacci retracement level, which further strengthens this zone.
A bounce from the 61.8% Fib retracement level could catapult PEPE to the 0.27 Fib extension level at around $0.00002250, representing an increase of more than 200% (4x) from the current price.
The MACD (Moving Average Convergence/Divergence) line is below the signal line and both are in negative territory, indicating continued bearish momentum, although the bars in the histogram are showing signs of a possible weakening of the bearish momentum.
If the PEPE bulls lose this bear level, it will be a sign of major weakness and could invalidate the current bullish thesis. Pepe coin price could continue to fall and test the next lower support level at around $0.00000475, representing a 35% decline from the current price.
Frequently Asked Questions (FAQs)
On August 18, two wallets withdrew 828.64 billion PEPE ($6.18 million) from Kraken and now hold 1.33 trillion PEPE ($9.93 million). This large accumulation indicates a bullish forecast for Pepe Coin.
The decline in PEPE reserves on all exchanges, including Kraken, and the negative net inflow over the past five days indicate that investors are holding coins and expecting a price increase.
The Pepe Coin price is testing historical support levels, including the 61.8% Fibonacci retracement, which could indicate future price movements and potential reversals.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video games. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes blockchain will revolutionize many industries in the coming years. When he’s not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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