Here's why memecoin Pepe rebounding
Pepe coin (PEPE) is witnessing a remarkable turnaround, recovering from lows hit earlier this month amid significant investor interest, improved whale accumulation, and broader market acceptance of blockchain assets.
PEPE’s comeback comes after a period of volatility and declining value. In the past week alone, PEPE has climbed nearly 50% from $0.0000083 to around $0.0000120 levels, thanks to a significant rise in investor confidence.
Currently trading at $0.00001183, PEPE has shown a notable recovery from the low of $0.00000765 plumbed on July 5th. Here are the reasons why there has been a consistent rise in its valuation.
Market sentiment
The market sentiment surrounding PEPE has turned cautiously positive. Analysts on X are of the view that PEPE will continue to rise in value, supported by broader market conditions and specific events.
For instance, the recent political turmoil involving former President Donald Trump has led to a rise in the prices of cryptocoins. To be sure, memecoins related to the former president are witnessing even strong demand as well as benefiting the growth of other memecoins like PEPE.
Surge in Whale accumulation
A significant factor behind PEPE's recent price rally is the substantial increase in whale accumulation. Whales, or large holders of PEPE, have been aggressively expanding their stakes, betting on the coin’s long-term value.
According to a report on Binance.com, dated July 16, Nascent, a notable entity in the crypto space, recently swapped its $MKR positions for $PEPE and $LDO. Specifically, Nascent deposited 1,215 $MKR to Binance and withdrew 141.23B $PEPE ($1.57M), 281K $LDO ($503K), and 3.4M $USDT from Binance. Nascent now holds a substantial 608.85B $PEPE, equivalent to $7.49M. This strategic reallocation by a significant player underscores the growing confidence in PEPE’s market position and potential for further appreciation.
Broader market acceptance and liquidity
US SEC’s “preliminary approval” for spot ETH ETFs has led to broader market acceptance of blockchain-based assets, particularly those related to Ethereum. PEPE, which is also an Ethereum-blockchain-based token, is benefiting from the strong market interest in Ethereum-based tokens.
The potential increase in liquidity and public exposure due to Ethereum ETFs is expected to continue pushing PEPE’s price upward. As more investors recognize its technological advancements and broader ecosystem support, the meme coin's value is likely to benefit from these favorable conditions.
Large holders reduce PEPE holdings
Despite the positive momentum, on-chain analytics reveal that PEPE's largest holders have offloaded a substantial amount of their holdings over the past 30 days, as per IntoTheBlock. Addresses holding between $100,000 and $10 million in tokens have seen significant selling. This trend suggests that while small investors are gaining confidence, larger holders are hedging their bets. The dynamic between increasing whale accumulation and large holder sell-offs adds a layer of complexity to PEPE’s market outlook.
What’s next for PEPE?
PEPE’s Relative Strength Index (RSI) at 59.27, while nearing the overbought territory, indicates high buying interest. At this level, it also shows significant buying interest that could sustain the upswing. If market conditions remain favorable, the coin's upward momentum is likely to continue.
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