PEPE Coin Struggles to Build up Momentum Despite Accumulation Signs, Will It Bounce Back?

The meme coin has been moving sideways for almost 2 weeks now, despite signs of accumulation. This performance suggests that its bears have ran

PEPE coin has been trading sideways for almost 2 weeks now, despite signs of accumulation. This performance suggests that its bears have ran out of steam but the bulls haven’t garnered enough momentum for a sizable comeback.

The meme coin was trading at a price point that could easily deliver a 100% uptick. A 100% gain from its current price would push the meme coin to at least a $0.0000191 price tag. This price level is below PEPE’s next major resistance zone, situated around the $0.000021 price level.

PEPE Coin Struggles to Build up Momentum

As noted earlier, PEPE has been demonstrating signs of accumulation, but demand has been relatively weak. As a consequence, the bulls and bears have been locked in a stalemate with no signs of a clear winner.

Among the bullish signs include the MADC’s upward trend ahead of its signal line, accompanied by bullish volume. Even the MFI confirms that liquidity has been flowing back into the meme coin.

Perhaps the biggest explanation for PEPE coin’s weak demand could be the absence of whale demand. Large holder net flows were significantly weaker in the last 2 weeks compared December and January.

PEPE coin may finally bounce back once the bulls make a strong come back. For now, price could also be prone to an unexpected price dip in case demand fails to put a foot forward. The relatively weak whale activity reflects the recent dip in confidence in the market.

Nevertheless, on-chain data confirms that accumulation has been taking place. Different classes of PEPE holders reveal more about the current market sentiment.

For example, cruiser (swing traders) balances grew from 136.66 trillion PEPE as of 10 December 2024 to 299.32 trillion PEPE as of 19 February.

Trader balances dropped aggressively from 208.5 trillion PEPE to 55.92 trillion PEPE during the same period. HODLer balances dropped from 74.45 trillion PEPE to 62.31 trillion PEPE coin within the same time frame.

The key take-away from the balances by time held is that cruisers have been aggressively buying as prices dropped lower. These are addresses that hold for weeks to months in anticipation of sizable price swings to profit from.

Meanwhile, traders have been declining sharply, signaling a declining focus on short term profit-taking. This shift usually precedes a major price move. HODLer balances experienced their sharpest dip in November.

This confirmed profit-taking at the height of the last major bullish uptick. So far HODLer balances have not been accumulating. Some potential reasons for this could be the weak market sentiment, lack of excitement and perhaps just waiting out the current bearish phase.