PEPE Coin's $5M Surge: Whale-Driven Momentum and Demand Zone Validation in the Meme Sector

In October 2025, PEPE Coin has emerged as a standout performer in the volatile memecoin sector, driven by a confluence of whale activity, technical demand zones, and short-term speculative momentum. A $5 million surge in value-sparked by large-scale transactions from institutional and high-net-worth investors-has reignited debates about the token's potential to defy broader market trends. This analysis dissects the mechanics behind the rally, focusing on on-chain behavior, price psychology, and the interplay between whale accumulation and retail sentiment.

Whale Accumulation: The Catalyst for Short-Term Momentum

Recent on-chain data reveals a sharp increase in whale activity, with the top 100 PEPE addresses on Ethereum boosting holdings by 4.28% in 30 days, according to a CoinDesk report. A pivotal event occurred when wallet 0x8f5 withdrew 280 billion PEPE tokens ($5 million), followed by a $4.97 million USDT purchase of 600.88 billion PEPE by investor 0x2bfb, the CoinDesk report notes. These transactions, occurring during a 28.97% monthly price decline, exemplify classic contrarian accumulation strategies.

Such moves have directly influenced price dynamics. For instance, a 1 trillion PEPE transaction on September 18 triggered an 8% price surge within 24 hours, according to a Blockchain News analysis, while October's whale-driven inflows coincided with a 2.5% 24-hour rally, outperforming both the memecoin sector and broader crypto markets, the CoinDesk report added. Open interest for PEPE futures has also spiked to $645 million, signaling growing institutional positioning, the CoinDesk report said.

Demand Zone Validation: Technical Levels and Whale Behavior

PEPE's price action in October has been tightly correlated with historical demand zones. The token re-entered a critical support range of $0.0000060–$0.0000075, according to a CoinGape report. Whale accumulation during this period, particularly in the $0.000011–$0.000012 zone, has reinforced its role as a psychological floor. Large holders (10–100 trillion PEPE) increased their stakes by 20% year-to-date, suggesting confidence in these levels as a medium-term base, the CoinDesk report said.

Technical indicators corroborate this narrative. A descending triangle pattern has formed on daily charts, with a potential 20% rally if resistance at $0.000009681 is breached, according to a CoinDesk note. Conversely, a breakdown could push the price to $0.000009 or lower, as suggested in a Coin Republic piece. Fibonacci retracement analysis further highlights the 61.8% level ($0.00000968) as a key inflection point, historically associated with reversals, per the Blockchain News analysis.

Short-Term Momentum: Volume, Sentiment, and On-Chain Metrics

While whale activity drives structural bullishness, short-term momentum remains mixed. Trading volume tripled to 5.61 trillion tokens in early October, coinciding with a 6% price jump, the CoinGape report noted. However, by late October, bearish trends emerged, with PEPE dropping to $0.000009205 and forming a descending triangle, as the earlier CoinDesk note observed. The Fear & Greed Index for PEPE stands at 27, reflecting extreme bearish sentiment, while the 14-day RSI of 24.26 underscores oversold conditions, according to CoinGape.

Retail participation adds complexity. Despite whale exits of 40 million tokens, the number of small holders rose from 207,000 to 211,000 in a week, indicating liquidity absorption by retail traders, as reported by The Coin Republic. On-chain metrics like On-Balance Volume (OBV) suggest buyers still control the market, though momentum has weakened compared to July's highs, The Coin Republic observed.

Implications for Investors

The interplay between whale accumulation and demand zone validation presents a high-risk, high-reward scenario. For short-term speculators, the $0.000009681 resistance level offers a critical test. A breakout could attract further institutional inflows, while a breakdown may trigger a retest of $0.0000080 support, per the CoinDesk note. However, structural challenges remain: PEPE's 420 trillion supply makes a $1 price point implausible in 2025, with most analysts projecting a range of $0.0018–$0.0020 by year-end, according to a PricePrediction.net projection.

Investors should also monitor exchange reserves, which have fallen to 26.6% of total supply from 45% in November 2024, signaling a shift toward self-custody and reduced short-term selling pressure, the CoinDesk report said.

Conclusion

PEPE's recent $5 million surge underscores the memecoin sector's susceptibility to whale-driven dynamics. While technical demand zones and accumulation patterns suggest near-term resilience, the token's long-term trajectory remains constrained by its massive supply and speculative nature. For traders, the coming weeks will hinge on whether whales continue to treat $0.000009681 as a launchpad or a ceiling.