Pepe price has plunged in the past three weeks, erasing some of the gains made in April and May. It crashed from $0.00001630, its highest point in May, to a low of $0.000009646. Let’s explore why the Pepe token may rebound as whales continue accumulating.
Pepe Price Technical Analysis
The 12-hour chart indicates that the Pepe price has declined significantly this month. It has crashed below the 23.6% Fibonacci Retracement level, while the 50-day and 100-day Weighted Moving Averages (WMA) have made a bearish crossover.
The MACD indicator has moved below the zero line, while the Relative Strength Index (RSI) has moved below the neutral point at 50.
Most importantly, the Pepe Coin price has formed a falling wedge pattern, which is a popular bullish reversal pattern. A wedge is made up of two descending and converging trendlines.
Therefore, the token is likely to experience a bullish breakout in the coming days. If this happens, the next point to watch will be at $0.00001630, its highest point on May 23, which coincides with the 50% Fibonacci Retracement point.
A drop below the key support at $0.0000075 will invalidate the bullish Pepe price forecast.
Pepe token price chart | Source: TradingView
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Whales are Buying Pepe Tokens
There are signs that whales are buying Pepe coins, indicating that they expect the price to rebound.
Data shows that Pepe whales have boosted their holdings by 5.59% in the last 30 days to 7.54 trillion. These whales held 7.13 trillion tokens on May 18.
More data shows that investors have moved Pepe tokens from exchanges. Their exchange outflows dropped by 3.18% to 248.5 trillion. For example, a newly created wallet withdrew 531.64 billion worth of over $5.5 million from the Binance exchange.
At the same time, the top 100 Pepe addresses have increased their holdings by 4.53% in the last 30 days to over 303.86 trillion tokens. However, the main risk is that smart money investors have reduced their holdings in the past 30 days.
The other bullish catalyst for the Pepe price is the rising funding rate in the futures market. It has remained on the positive side in the past few weeks, a sign that investors anticipate that the token’s future price will be higher than where it is today.
Another bullish catalyst for the Pepe coin price is that the futures open interest has increased to over $528 million, up from $457 million the day before.
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