PEPE surged 10% in 24 hours amid a wave of accumulation from whales, but is still stuck in an accumulation pattern as derivatives maintain a neutral stance.
Although PEPE has made an impressive breakout, there have been no signals confirming a sustainable bullish cycle due to trading momentum primarily coming from the spot market rather than derivatives.
MAIN CONTENT
PEPE increased by 10% along with the return of whales but remains within an accumulation pattern.
Trading is primarily focused on the spot market; derivatives have yet to demonstrate a role in facilitating a breakout.
The buying activity of both large investors and retail investors aligns, but a real explosion needs additional momentum from derivatives.
What is PEPE?
PEPE is a prominent memecoin in the Ethereum ecosystem, often seen as a beta indicator for ETH due to its strong community and price movements typically moving in sync with Ethereum.
Launched as a humorous project, PEPE quickly gained attention due to its strong volatility and community effect. According to recent trends, PEPE often increases in price in parallel with Ethereum's growth, indicating a high speculative nature.
Although it started as a memecoin, PEPE's allure has turned it into a popular trading medium on major exchanges in the Ethereum ecosystem, aiming for a market cap in the millions of USD with sudden volatility.
What caused the sudden 10% rise of the memecoin PEPE?
In the last 24 hours, PEPE recorded a 10% increase, leading the memecoin group on the Ethereum blockchain as the altcoin market outperformed Bitcoin.
This result follows strong performance from the day before, when memecoins collectively recovered, creating a bullish sentiment in the market. The PEPE community maintains a positive stance, contributing to making this token a potential representative whenever the altcoin market is active.
The growth context is accompanied by outstanding signals from Ethereum across the cryptocurrency market; however, the price of PEPE is still being restrained by a prolonged accumulation pattern.
Is PEPE really experiencing strong volatility?
Despite rapid price increases, PEPE is still fluctuating within an accumulation triangle pattern formed since early May, close to the peak of the triangle – a sign that the market has yet to confirm a new trend.
The RSI index recorded a slight increase after the price formed a horizontal bottom, indicating that demand is recovering slowly. Previously, the current price area had recorded a recovery of up to 20% after a sharp decline in July-August.
The daily chart reveals that PEPE has not escaped the prolonged accumulation zone. If it rises above $0.00001366, the price structure will shift to a clear upward trend. Conversely, if it loses the support level, the upward trend from the double bottom pattern may be broken.
What do the technical indicators say?
The Accumulation Strength Index remains flat, indicating that both large and small investors are still in agreement to accumulate since the bottom in March.
Currently, according to TradingView, PEPE is trading around $0.00001157. A new breakout momentum will only truly appear if trading volume increases significantly along with technical signals breaking out of the accumulation triangle.
The total number of transactions across the system is approximately 6.819 million, with 1.206 million buy transactions and only 851K sell transactions – reflecting an overwhelming buying force in the spot market.
Are whales and large addresses accumulating more PEPE?
Data recorded after a strong recovery shows that whales have started to return to the PEPE game after many months of being out.
Despite a 69% drop since June 2024, whales continue to accumulate more PEPE instead of retreating.
EyeOnChain, June 2024, report on PEPE market data
An experienced trader with a 100% win rate on PEPE has just returned after 5 months, withdrawing $2 million worth of tokens from Binance to their personal wallet. This address currently holds 1.31 trillion PEPE with an average purchase price of $0.00001683 – temporarily incurring a loss of $7.25 million on paper.
Additionally, the top 100 addresses increased their holdings by an additional 1.5% in the month – a sign that long-term investors still believe in PEPE's growth potential.
Are retail traders buying PEPE?
Along with whales, retail investors are also intensifying their accumulation of PEPE into cold wallets.
The total number of buy transactions dominates, indicating consensus from both large and retail investors. The influx of capital has significantly increased as both groups believe in the strong recovery potential of this memecoin.
This is a positive signal that reinforces the expectation of a breakout if PEPE surpasses the current accumulation zone.
Where does PEPE's upward momentum come from: Spot or derivatives?
A deeper analysis shows that the upward momentum of PEPE primarily comes from the spot market rather than derivatives.
Data from CryptoQuant emphasizes that PEPE's Futures Taker CVD index has been almost neutral for 3 months, contrasting sharply with ETH's upward momentum due to trading leverage.
PEPE ended the day in the green but still lacks the volume to trigger a real explosion – more participation from the derivatives market is needed to create strong upward momentum.
CryptoQuant, report on cryptocurrency derivatives index for June 2024
The absence of margin or derivative traders indicates that the market has not clearly defined a trend. A clear breakout could attract the attention of derivative investors, creating a new upward wave for PEPE.
Can PEPE break out of the accumulation zone?
Despite recording good growth, PEPE is still stuck in the accumulation zone, lacking large trading volume to confirm a bullish cycle.
To form a strong and sustainable upward wave, PEPE needs the influx of new capital from derivatives, pushing trading volume beyond the prolonged accumulation triangle.
The market is waiting for a decisive breakout – if successful, PEPE will regain its leading position among memecoins on the Ethereum network.
Frequently Asked Questions
What is PEPE memecoin?
PEPE is a famous memecoin on the Ethereum blockchain, known for its strong volatility and large community. This token often grows in sync with ETH.
Which market is PEPE currently trading primarily?
The upward momentum of PEPE in recent times primarily comes from the spot market rather than derivatives, according to CryptoQuant's indicators.
Are PEPE whales buying or selling?
After several months of silence, PEPE whales have returned to accumulate, increasing their holdings along with the top 100 addresses accumulating an additional 1.5% in the month.
When can PEPE make a strong breakout?
Only when there is strong participation from derivative capital can PEPE confirm a sustainable bullish cycle and break out of the current accumulation zone.
What important price level does PEPE need to surpass to confirm a bullish trend?
If it surpasses the threshold of $0.00001366, PEPE will confirm a new bullish structure according to technical analysis from TradingView.
Source: https://tintucbitcoin.com/ca-map-gom-pepe-cho-bien-dong/
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