As a seasoned analyst with over two decades of experience in the ever-evolving world of cryptocurrencies, I’ve seen my fair share of market trends and fads come and go. The current surge in popularity of meme coins like Pepe (PEPE) is no exception. While the initial disagreement among the founding team initially raised eyebrows, it’s fascinating to see how this frog-themed coin has risen to become a top-tier player in the meme coin market.
In the surge of interest for meme coins like Solana (SOL), Ethereum (ETH), Tron (TRX), and BNB Chain, it’s the frog-themed Pepe (PEPE) that has become the preferred choice among institutional investors and individual traders. This mid-tier meme coin, valued at approximately $3.3 billion in total market cap, trades around $1.4 billion daily and boasts over 279K unique holders on the blockchain.
The meme currency has become widely recognized among traders who are speculative due to its substantial liquidity exceeding $35 million, secured through Ethereum-based smart contracts. Initially encountering turbulence with a significant dispute within the founding team, the Pepe project has since ascended to a leading position in meme coins over the past year.
Whale Investors Buy More Pepe Tokens
As a researcher studying the cryptocurrency market, I’ve noticed that despite the current bearish sentiment, long-term investors are taking advantage of this period to amass more coins. They seem to be positioning themselves for an anticipated altseason. Interestingly, looking at historical trends, it appears that the crypto market tends to recover in the fourth quarter, following a bumpy August and September, after Bitcoin‘s halving event.
In simpler terms, as the United States prepares for its upcoming elections and the Federal Reserve plans to lower interest rates for quantitative easing, there’s speculation that this could ignite a significant increase in cryptocurrency prices (a crypto bull run). Moreover, the total amount of money available globally has reached an unprecedented high of over $95 trillion, suggesting that we might be on the brink of a large-scale market uptrend.
Based on data analysis by Lookonchain, it’s been discovered that a wallet linked to Ceffu, a firm offering high-end custody and liquidity services for institutional investors, bought approximately 1.48 trillion Pepe units, valued at more than $11.6 million, from Binance today.
A wallet related to #Ceffu withdrew 1.48T $PEPE($11.6M) from #Binance just now.
— Lookonchain (@lookonchain) August 29, 2024
Today, an analysis company focusing on blockchain data also noticed another large investor buying a significant amount of Pepe tokens. Specifically, a cryptocurrency trader who earned approximately $1.77 million from Pepe last year just bought over 1 million Pepe coins using $1.34 million in USDC.
Bearish Sentiments
At a pivotal juncture, institutional investors’ growing interest in Pepe is significant, as this altcoin has been encountering negative market trends. Technically speaking, there are signs that a potential head and shoulder (H&S) reversal pattern could be forming on the weekly chart for Pepe, following its all-time high achieved in May.
Pepe’s price may encounter a significant barrier at approximately $0.0000092 due to a strong resistance level and a bearish pattern on the weekly Relative Strength Index (RSI). If Pepe’s price ends August below this week’s candlesticks, it could signal the start of a downward trend, potentially leading to a mid-term goal of around $0.0000034. This level corresponds with the daily 1.618 Fibonacci Retracement, suggesting a possible pullback in price.
From my analysis perspective, surpassing the resistance at approximately $0.0000092 on a recurring basis could thrust Pepe’s price to a fresh All-Time High (ATH) prior to year-end.
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2024-08-29 15:38