Memecoins
Here’s Why Pepe Memecoin Is Bounced Back By Investing.com
Pepe coin (PEPE) is experiencing a remarkable turnaround, recovering from lows reached earlier this month thanks to significant investor interest, improved whale accumulation, and broader market acceptance of blockchain assets.
PEPE’s comeback comes after a period of volatility and declining value. In the past week alone, PEPE has climbed nearly 50% from $0.0000083 to around $0.0000120, thanks to a significant increase in investor confidence.
Currently trading at $0.00001183, PEPE has seen a notable recovery since trading at a low of $0.00000765 on July 5. Here are the reasons why its valuation has been steadily increasing.
Market sentiment
Market sentiment around PEPE has turned cautiously positive. X analysts believe that PEPE’s value will continue to rise, supported by broader market conditions and specific events.
For example, the recent political turmoil involving former President Donald Trump has led to a surge in cryptocurrency prices. Certainly, memecoins linked to the former president are seeing even greater demand and are also benefiting the growth of other memecoins like PEPE.
Increased whale accumulation
One of the important factors behind the recent PEPE price rally is the substantial increase in whale accumulation. Whales, or large PEPE holders, have been aggressively increasing their holdings, betting on the long-term value of the coin.
According to a report published on Binance.com on July 16, Nascent, a notable entity in the cryptocurrency space, recently swapped its $MKR positions for $PEPE and $LDO. Specifically, Nascent deposited $MKR 1,215 into Binance and withdrew $PEPE 141.23 billion ($1.57 million), $LDO 281,000 ($503,000), and $USDT 3.4 million from Binance. Nascent now holds a substantial $PEPE 608.85 billion, equivalent to $7.49 million. This strategic reallocation by a major player underscores the growing confidence in PEPE’s market position and its potential for further appreciation.
Greater market acceptance and liquidity
The preliminary approval by the US SEC of ETH spot ETFs has led to broader market acceptance of blockchain-based assets, particularly those linked to . PEPE, which is also an Ethereum blockchain-based token, is benefiting from the strong market interest in Ethereum-based tokens.
The potential increase in liquidity and public exposure due to Ethereum ETFs should continue to drive PEPE’s price higher. As more investors recognize its technological advancements and the broader support of its ecosystem, the value of the meme coin should benefit from these favorable conditions.
Large holders reduce their PEPE holdings
Despite this positive momentum, on-chain analysis reveals that PEPE’s largest holders have sold off a substantial portion of their holdings over the past 30 days, according to IntoTheBlock. Addresses holding between $100,000 and $10 million worth of tokens have seen significant selling. This trend suggests that while smaller investors are gaining confidence, larger holders are hedging their bets. The dynamic between increasing whale accumulation and massive holder selloffs adds a layer of complexity to PEPE’s market outlook.
What’s next for PEPE?
PEPE Relative Strength Index (RSI) at 59.27while approaching the overbought territory, indicates a high buying interest. At this level, it also shows a strong buying interest that could support the upside. If the market conditions remain favorable, the bullish momentum of the coin is likely to continue.