Pepe Coin's Market Cap Drops 50% to $4 Billion, Whales Accumulate

Pepe Coin (PEPE) has experienced a significant decline in its market capitalization, dropping from $8.7 billion to $4 billion, marking a 50% decrease. This downturn has led to cautious behavior among many investors, with few willing to buy at current prices. However, some investors see this as an opportunity to dollar-cost average their holdings, indicating a long-term perspective on the cryptocurrency's potential.

One notable development is the accumulation of PEPE by large investors, often referred to as "whales." Reports indicate that up to $20 million worth of PEPE has been moved from exchanges to cold storage. This action suggests that these significant holders have confidence in PEPE's future and are holding onto their assets rather than selling during the dip. This behavior is often seen as a bullish signal, as it indicates that large investors are positioning themselves for a potential price recovery.

Technical analysis provides additional insights into PEPE's current situation. The Relative Strength Index (RSI) suggests that PEPE may be oversold, which often precedes a price bounce. Other technical indicators, such as "Breaks of Structure" (BOS) and "Changes of Character" (CHoCH), indicate that PEPE is reclaiming key support levels. The coin is currently attempting to break through a resistance zone at $0.00000780, and if successful, it could target $0.00000850 in the medium term.

Open interest in PEPE has increased by 8.47% in the last 24 hours, reflecting growing optimism among traders. The funding rate has also turned positive in the last 48 hours, indicating a renewed appetite for risk in the market. The long/short ratio stands at 1.41, meaning buyers currently outnumber sellers, creating upward pressure on the price. Additionally, "Smart Money" traders have shown interest in PEPE, with a net flow of $813,000 in recent trading. These sophisticated investors bought at an average price of $0.0000071, and with current prices higher, they are already seeing profits.

Despite these positive signs, risks remain. If PEPE falls below $0.00000740, it could trigger a bearish breakdown, potentially pushing prices down to $0.00000680 or lower. The broader crypto market's volatility also affects PEPE, as it does all cryptocurrencies. However, PEPE's community continues to grow, with the token surpassing 400,000 holders. Social media activity remains strong, with consistent efforts to maintain community engagement through memes and discussions. High-profile figures have indirectly influenced sentiment around frog-themed tokens, adding speculative momentum to PEPE's potential comeback.

For now, PEPE remains in a critical position, battling key resistance levels while showing signs of a possible recovery. Long-term investors are watching macroeconomic factors that could influence the entire crypto sector, including geopolitical tensions and traditional market uncertainty. If the broader crypto market regains bullish momentum, PEPE could benefit, as history shows that meme coins can recover quickly when market sentiment turns positive.