PEPE has dropped 8% due to spikes in whale activity: what will happen next?
A recently inactive whale has become active again after two years, withdrawing 1.79 trillion Pepe [PEPE] — worth $22.23 million — from Binance to a new wallet.
This significant move coincides with a substantial increase in the volume of large transactions, indicating growing interest from whales and institutional players.
Notably, transactions in the range of $100,000 to $1 million surged by 147.25%, while transactions in the range of $1 million to $10 million and from $10,000 to $100,000 increased by 100% and 91.72%, respectively. These increases suggest a quiet but deliberate shift in capital.
Thus, such aggressive accumulation behavior may lay the groundwork for the next price stage. This marks a potentially bullish signal often observed in the early stages of a rally.
The moods are far from euphoria
While whale activity and price movements have stirred the market, social dominance has shown only modest growth. It rose to 0.82%, compared to previous lows around 0.6%, indicating a slight return of community engagement.
However, this rise is relatively restrained compared to the euphoric spikes seen in previous uptrends. This restrained chatter may indicate that retail traders are still on the sidelines, watching how whales maneuver.
Thus, the market appears to be in a transitional phase, where smart money is acting early while broader sentiments remain cautious.
Is the price not moving too fast?
The network value to transactions (NVT) ratio of PEPE has risen to 59.27, which may raise concerns. The indicator reflects that the token's valuation is starting to outpace the volume of its on-chain transactions.
Such an imbalance often signals overheating or a decrease in network utility relative to market capitalization. While this does not confirm a reversal, the increased ratio emphasizes the need for caution among traders.
Moreover, this suggests that if activity does not increase, maintaining higher price levels may become challenging.
Will the volatility caused by leverage determine PEPE's next move?
At the time of writing, PEPE was trading at $0.00001233, down 8.55% over the last 24 hours. Liquidation data showed intense accumulation of pressure on long positions around $0.00001224, while short positions clustered above $0.00001300.
These zones mark critical battlefields between bulls and bears. Moreover, positions with high leverage, especially 25x and 50x, are tightly packed at these levels, increasing the likelihood of sharp movements.
Therefore, any breakout or breach from the current zone could trigger cascading liquidations. Traders should closely monitor how market makers utilize these concentrations to create volatility.
What does the technical forecast suggest?
Despite the recent drop, PEPE has still maintained its structure above the Bollinger middle band, which was around $0.00001076 at the time of publication. The price faced a bounce near the resistance of $0.00001554 and has since retraced.
However, the MACD was approaching the neutral crossover zone, hinting that bearish momentum may slow down. The broader uptrend that began in early April will remain unchanged unless key support at $0.00001027 is breached.
Therefore, the recent correction may serve as a healthy consolidation phase rather than a complete reversal. Momentum traders may look for strength above $0.00001300 to re-enter bullish positions.
Is PEPE preparing for a new rise?
Recent accumulation by whales, an increase in large transactions, and moderate growth in public interest indicate rising confidence in PEPE's prospects.
Are you holding #PEPE ? What are your predictions, will there be more flight🚀⚡?
