PEPE Gains 2.25% Despite Whale Sell-Off, Potential 40% Surge Ahead

PEPE, a popular memecoin, has recently experienced significant activity from crypto whales, which has had a notable impact on its price. A whale sold 723.67 billion PEPE tokens for 4.63 million DAI, as revealed by blockchain-based transaction tracker. Despite this substantial sell-off, PEPE's price remained stable and even gained by 2.25% to the upside. This activity attracted significant attention from crypto enthusiasts and may have the potential to trigger selling pressure.

Analyzing PEPE’s daily chart, it appeared as though the memecoin was recovering from the sell-off. According to the price analysis, PEPE seemed to be forming a bullish double-bottom pattern on the daily timeframe. This pattern was not yet complete and had a single leg with two bottoms at the key support level of $0.0000058, indicating a potential for price rebound or upward momentum. Historically, this level has always provided support for PEPE’s price, and whenever the memecoin reaches this level, it records a price rebound or upward momentum.

Based on its recent price action and historical patterns, if PEPE holds its key support level, history may repeat itself. Accordingly, PEPE’s price could soar by 40% to hit the $0.0000089-level in the future. However, if PEPE’s price fails to hold its key support level of $0.0000058 and closes a daily candle below the $0.0000056-level, a massive sell-off could occur. The daily chart revealed that a breakdown of these key support levels could push the memecoin down by 33%, potentially reaching the next support level at $0.00000368 in the future.

At the time of the report, PEPE was trading near $0.0000064, following a surge of over 2.25% in the past 24 hours. However, over the same period, its trading volume dropped by 6.50% – A sign of lower participation from traders and investors, compared to the previous day. Intraday traders seemed to be following whale activity, betting on the bearish side. Data from on-chain metrics revealed that traders were over-leveraged at $0.00000618 on the lower side (support) and $0.00000655 on the upper side (resistance). They built $1.76 million and $2.85 million worth of long and short positions, respectively, over the past 24 hours. Despite the recent upside rally and potential price rebound, short sellers have been dominant. They may have the potential to push PEPE’s price even lower in the coming days.