In the past 24 hours, Pepe (PEPE) has dropped below the $0.00001 mark for the first time in over a month, hitting a low of $0.00000963.
This price drop has attracted opportunistic buyers, particularly whales who seem to be accumulating this memecoin at a discounted price.
$5.5 million represents confidence?
According to data from Onchain Lens, a new whale has entered the market after the recent crash and purchased 531.63 billion PEPE, equivalent to $5.55 million.
All trades were executed through Binance, marking a rare moment of confidence despite the weakening market situation.
It is noteworthy that this whale is buying in the context of generally declining buying activity from large addresses. Whale accumulation has sharply decreased from 28 trillion to 4 trillion PEPE between June 16 and June 18.
Even when the cash flow from whales stagnates, net cash flow remains positive, with a net increase of 106 billion PEPE. This indicates that buying pressure, although eased, is still present among the largest holders.
Retail investors are also joining in.
In the spot market, the shift is even more pronounced. In the latest trading session, buyers accumulated 1.2 trillion PEPE, completely reversing from the previous session when sellers dumped 16.2 trillion tokens.
Moreover, the past three weeks have recorded a continuous dominance of buyers in trading volume in the spot market. This aligns with the Spot Taker CVD indicator, showing a prolonged dominance of active buying orders (in green), highlighting the demand that still exists despite the price decline.
So both whales and retail investors seem to be returning to the market as this memecoin becomes cheaper. The current market behavior indicates an optimistic sentiment about prospects, thus they continue to buy even in a downtrend.
The price of PEPE is still stuck in a downtrend.
According to analysis, PEPE is under strong selling pressure, dropping from $0.0000135 to $0.0000096 in just the past week. Therefore, despite whale purchases, the overall trend has not changed.
PEPE has lost 23% in the past seven days, dropping from $0.0000135 to $0.0000096. At the time of writing, this memecoin is trading at $0.0000099 — still below the important psychological support level.
When observing momentum indicators, both DMI and Stoch are in the bearish zone and continue to decline. The positive directional index has dropped to 19 and is nearly crossing below the negative index.
Another drop below the current threshold and breaking the 17 mark would be a clear signal for the strong continuation of the downtrend.
This possibility is further reinforced as the Stoch RSI indicator is deeply declining, falling into the oversold region since a bearish signal emerged three days ago.
In summary, whales are buying and retail investors are also entering the market, but market momentum has not yet reversed. If the bulls can reclaim and hold the $0.0000107 level, a short-term recovery may occur.
However, if the current price level cannot be maintained, PEPE may continue to plummet to $0.00000855. Currently, this memecoin is in a 'dilemma' as it is caught between buying confidence and a clear downtrend.