PEPE whales buy the dip, but is that enough for the memecoin?

  • PEPE registered a surge in whale interest as prices fell
  • Social volume and sentiment around PEPE declined too

Recently, Pepe [PEPE] surprised memecoin investors by rallying significantly on the charts against all odds. However, the aforementioned surge was short-lived as the rally quickly came to a halt over the last few days.

Whales buy at a discount

Despite the decline in price, however, whales continued to have faith in the popular memecoin. In fact, over the last few days, a whale bought 447.67 billion PEPE – worth $5.85 million – after PEPE’s price dropped, according to Lookonchain’s data.

Screenshot 2024 06 08 at 4.42.25 PM

Source: X

Here, it’s worth noting that it wasn’t just one whale that behaved like this in isolation. AMBCrypto’s analysis of Santiment’s data revealed that the 10- 10,000,000 cohort of holders grew significantly, indicating a large-scale accumulation of PEPE being done by whales. This hike in interest from whales may translate to positive price movement for the memecoin sooner or later.

However, a high concentration of whales would come at the cost of centralization of PEPE holdings. If the percentage of PEPE held by whales becomes increasingly high, retail investors will become susceptible to volatile price movements caused by the behaviour of these whales.

Pepe PEPE 17.01.33 08 Jun 2024Pepe PEPE 17.01.33 08 Jun 2024

Source: Santiment

At press time, PEPE was trading at $0.0000129. Over the last 24 hours, the price of PEPE fell by 10.06%. Despite the significant decline in price, the trend for PEPE has been relatively unharmed though. Ever since PEPE began rallying after 01 May, the price hit multiple higher highs and higher lows – Indicative of a bullish trend. The price of PEPE would need to fall further before a full reversal can be expected.

The RSI (Relative Strength Index) for PEPE fell significantly – A sign that bullish momentum had declined materially over the last few days. On the contrary, the CMF (Chaikin Money Flow) for PEPE remained high – A sign of high capital inflows owing to recent whale behavior.

With enough whale accumulation and money flow, PEPE holders could soon see green again.

PEPEUSDT 2024 06 08 17 09 39PEPEUSDT 2024 06 08 17 09 39

Source: Trading View

The social angle

On a separate but related front, the social volume fell too, pointing to the waning popularity of the token. Coupled with that, the weighted sentiment around the token declined, indicating a surge in negative comments around PEPE.

These factors could inhibit PEPE from seeing further growth on the charts.

Read Pepe’s [PEPE] Price Prediction 2024-25

Pepe PEPE 17.16.59 08 Jun 2024Pepe PEPE 17.16.59 08 Jun 2024

Source: Santiment

Next: XRP’s price falls to 2-month low – More losses incoming?

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