Key Takeaways
- PEPE’s price recently surpassed its realized price, indicating psychological support and potential for recovery.
- Large transactions ($100k+) nearly doubled recently, indicating whales are likely accumulating, which is bullish.
- PEPE consolidates between $0.000012 and $0.000015, forming a bull flag pattern on the daily chart.
PEPE, the frog-themed memecoin built on Ethereum, has declined by 15% over the past seven days, with its price currently trading around $0.000013.
This downturn comes weeks after the cryptocurrency staged a notable rebound from its yearly low.
Despite the recent dip, it appears unlikely that PEPE will face another prolonged correction similar to the one experienced during the first quarter of this year.
Pepe Turns Resistance to Support
From January 25 until this weekend, PEPE traded below its realized price, representing the average value at which all tokens in circulation last moved.
In most cases, the metric acts as psychological support or resistance. When an asset’s spot price is below the realized price, most holders are at a loss, which indicates resistance that could push the asset lower.
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However, in this situation, PEPE’s price has climbed past the on-chain cost basis for the first time since the first month of the year. This position indicates support for the memecoin.
Therefore, if PEPE holds its ground above the realized price, it could erase some of its recent losses.
Whales Accumulate
Beyond this, on-chain data shows that large transactions have also increased. On Saturday, May 17, there were fewer than 193 PEPE transactions worth $100,000 or more.
As of this writing, it has increased to 365 transactions. A surge in large transactions indicates that key stakeholders (whales) are either accumulating or selling.
Accumulation (buying large amounts) is a bullish sign that could potentially increase the price. On the other hand, distribution (selling large amounts) is as bearish, possibly leading to price drops.
However, since PEPE’s price is above the realized price, this hike in large transactions suggests that whales are buying the dip. If sustained, PEPE is likely to experience a short-term recovery.
PEPE Price Analysis: Renewed Rally Coming
From a technical perspective, we observed that PEPE’s price has been consolidating between $0.000012 and $0.000015 for the past few days. This consolidation eventually led to a bull flag formation since PEPE jumped from $0.0000080 to $0.000016.
In addition to that, the Moving Average Convergence Divergence (MACD) has remained in the positive territory. This current MACD rating indicates bullish momentum.
Therefore, if the momentum remains unchanged, PEPE’s price might surpass the overhead resistance at $0.000014. Once successful, the memecoin’s value could rise toward $0.000020 at the 0.382 Fibonacci level.
However, if the momentum around PEPE becomes negative, this price prediction might not be able to be passed.
In that case, PEPE might slide below the bull flag’s lower trendline, and its price could drop to $0.000010 or lower.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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