Key takeaways
What does recent whale activity suggest about Pepe’s market sentiment?
Whales sold 9.04 trillion PEPE while purchasing only 6.62 trillion, signaling bearish sentiment and potential downward pressure.
Could Pepe bounce back after his 21.66% drop?
If buying pushes the RSI above 31, Pepe could reclaim $0.000009 and target $0.0000106, but continued selling could take it back to $0.00000614.
After the crypto market collapsed, Pepe (PEPE) plunged to March 2024 levels before rebounding. At press time, PEPE was trading at $0.00000724, down 21.66% over the past 24 hours.
Amid this market plunge, investors, especially whales, rushed into the market to take strategic positions.
Pepe whale activity intensifies
Interestingly, amid the market turmoil, Pepe whale activity has intensified, both on the demand and supply sides.
According to Nansen, Pepe whales landed 9.04 trillion between October 10 and 11. During the same period, major memecoin holders acquired 6.62 trillion tokens.
Source: Nansen
Among the buyer whales, Chain goal identified one who spent $4.97 million to purchase 600.88 billion Pepe tokens. The wallet still contains $1 million, which could be used to purchase more in the near future.
Despite this large purchase, Pepe recorded a negative balance change of $2.42 million, indicating that the Whales sold more than they bought overall.
This trend generally reflects a decline in market confidence, a bearish signal. Historically, sell-offs by large holders have often led to further price declines due to increased downward pressure.
Retail traders sell
Unsurprisingly, as Pepe’s downward spiral persisted, small investors rushed to close their positions to avoid further losses.
According to Coinalyze, Pepe recorded 25.19 trillion in selling volume, compared to 24.84 trillion in buying volume in the last 24 hours.
Source: Coinalyse
As a result, memecoin experienced a negative buy-sell delta of -350 billion tokens, at press time, a clear sign of aggressive spot sales.
Additionally, stock market activity further validates this market condition.
According to Coinglass, Pepe’s Spot Netflow became positive after being negative the day before. PEPE net flow was $10.42 million, reflecting higher inflows.
Source: CoinGlass
When capital flows increase, this suggests that investors are depositing aggressively on exchanges, increasing the risk of further downward pressure.
What’s next for PEPE?
According to AMBCrypto, PEPE fell as investors, both whales and retailers, increased their selling activities.
Due to this, memecoin’s relative strength index (RSI) fell to 25, reaching oversold territory before rising slightly to 31, at the time of writing.
Such volatility on the RSI indicates an increased battle between bulls and bears for market control.
Source: Tradingview
If buying activity, especially from whales, pushes the RSI up to 31, memecoin could rebound and reclaim the EMA20 level at $0.000009, with a potential move towards the EMA200 at $0.0000106.
However, if selling pressure continues to dominate, memecoin will likely find support near $0.00000614.
