PEPE Whales' $42 Million Boost: Can It Prevent a 10% Price Dip?

Analysis

September 6, 2024 4:04 PM

In Brief:
PEPE whales have accumulated over 6 trillion PEPE, valued at $42 million, to stabilize the meme coin's price, preventing a potential 10.6% decline.
Despite bearish sentiment from long-term holders, whale activity has been crucial in maintaining PEPE's price above its critical support level of $0.00000702.

PEPE Whales' $42 Million Boost: Can It Prevent a 10% Price Dip?

PEPE whales have emerged as a key force in stabilizing the meme coin's price, which has been under pressure since a significant crash at the end of July. Despite attempts to regain momentum, PEPE remains close to testing a critical support floor.

Whale Activity Counters Bearish Sentiment

The overall market sentiment surrounding PEPE has turned bearish, with long-term holders showing decreased confidence. The "age consumed" metric, indicating long-term holders' activity, has spiked, suggesting concerns about PEPE's future.

However, whale activity has played a crucial role in keeping PEPE's price afloat. Recently, top addresses added over 6 trillion PEPE, valued at $42 million, employing a "buy low" strategy to stabilize the price. This intervention has prevented PEPE from a sharper decline, although risks remain if whale buying decreases or market conditions worsen.

PEPE's Short-Term Price Outlook

Currently, PEPE is trading just above its critical support floor of $0.00000702. This level has acted as strong support multiple times, and there is an expectation that PEPE will hold above it for now. Without whale intervention, PEPE could have faced a further 10.6% decline to $0.00000633.

If the current buying persists, PEPE could move towards its next resistance at $0.00000912. However, increased selling pressure could shift this outlook, potentially leading to a decline to its support level at $0.00000633.

Disclaimer: Backdoor provides informational content only, it is not offered or intended to be used as legal, tax, investment, financial, or other advice. Investments in digital assets involve risk, and past performance does not guarantee future results. We recommend conducting your own research before making any investment decisions.