The price of the meme coin PEPE has declined by 8% in the last 24 hours to $0.000008475, in line with the market's decline of 3.5% today following a correction that followed the wave of enthusiasm after Donald Trump's announcement of his readiness to reach a trade agreement with China, in the absence of any notable tangible consequences from the American president's initiative.
However, the price of PEPE still retains gains of 16% over the week and 26% compared to its value two weeks ago, following a new buying wave due to the initiative of the whales (large investors) to buy more of it in large quantities. Given that PEPE's trading volumes have nearly quadrupled in the past few days, it may continue to gain more in the coming days.
The price of PEPE is slightly declining, but the whales continue to buy it in large quantities, so is it wise to follow them?
PEPE's recent gains are primarily attributed to the actions of owners of 5 separate crypto wallets purchasing over 600 billion PEPE coins on April 15 when its price was around $0.0000070, after which the coin embarked on an upward trajectory despite lacking strong subsequent buying pressure from whales over the past week or so.
However, upon reviewing the chart of daily price movements for the PEPE/USD pair, we can observe that the price remains at the beginning of a medium-term upward trend.
For example, the 30-day moving average (DMA-30 in orange) has recently started to rise towards its 200-day counterpart (DMA-200 in blue), and it is likely that there will be little room for a breakout before hitting the upper time frame barrier (DMA-200) and experiencing a strong correction at that point.
We will also notice the Relative Strength Index (in purple) rising close to 70 after spending nearly two months below 50, indicating that it has undergone a selling wave.
Therefore, it is likely that the price of PEPE will continue to recover in the next few days, provided that the broader market continues to rise after undergoing an extended selling wave as well, while other positive indicators include the fact that PEPE's investment attraction rate has been very positive in recent days, indicating renewed buying pressure. Given its history of price surges and strong volatility, some analysts see the potential for its value to multiply by up to 10 times during the expected upward trend.
Thus, we may witness the price of PEPE climbing to $0.000010 over the next month, paving the way for a recovery to $0.000020 by the last three months of this year.
