Pepe (PEPE) Price Shows Signs of Bottoming as Supply on Exchanges Rises and Whale Accumulation Intensifies

The Pepe price has moved sideways this month and is showing signs of bottoming as supply on exchanges rises and whale accumulation intensifies.

Pepe price has moved sideways this month and is showing signs of bottoming as supply on exchanges rises and whale accumulation intensifies.

Pepe coin (PEPE) token was trading at $0.0000075 on Sunday, a few points above the year-to-date low of $00.000005860.

On-chain metrics show that the value of Pepe could surge in the next few weeks. The 365-day Mean Dollar Invested Age or MDIA has gone vertical to 128, from the November low of 35.

The chart below shows the huge move in the MDIA, which is a mainstay indicator that economists use to gauge the willingness of investors to hold onto their investments. A surging MDIA shows that holders are not selling their tokens.

Another metric shows that the supply of Pepe tokens in exchanges has continued falling this year. The supply on exchanges as a percentage of the total supply has dropped to 26.6%, from 45% in November last year.

A falling supply on exchanges is a good catalyst for a coin because it is a sign that investors are moving their tokens to self-custody. A rising figure indicates that these investors are transferring their coins to exchanges in preparation for selling them.

The decreasing figure is notable since, in many instances, the supply on exchanges drops as a token is in a strong downward trend.

Further, data shows that whales are continuing to accumulate the Pepe coin. The supply held by top addresses has begun to recover. These whales have accumulated 172 trillion coins, from 131 trillion tokens.

The chart below shows that the number of coins held by top addresses dropped in November, which coincided with the start of the liquidation in crypto markets.

The daily chart shows that the Pepe price bottomed at $0.000005860, where it failed to move below several times since August last year. It has formed a small double-bottom pattern at the same level.

Pepe has also formed a falling wedge pattern, which is characterized by two descending and converging trendlines. Oscillators like the MACD and the Awesome Oscillator have formed a bullish divergence pattern.

Therefore, the token will likely bounce back, as bulls target the psychological point at $0.000010, up by 35% above the current level.