Whale Accumulation Sparks Optimism as PEPE Coin (PEPE) Rallies 7.23%

The latest rally follows a series of volatile movements that saw PEPE struggling to hold key support levels. However, renewed buying interest, particularly from large investors, has fueled speculation about an extended rally.

Pepe Coin (PEPE) showed signs of a breakout on Wednesday morning, rising 7% after a crypto whale pulled out 492 billion PEPE (worth $3.74 million) from Binance.

The latest rally follows a series of volatile movements that saw PEPE struggling to hold key support levels. However, renewed buying interest, particularly from large investors, has fueled speculation about an extended rally.

On-chain data indicate that a crypto whale recently pulled out 492 billion PEPE tokens—worth approximately $3.74 million—out of Binance. Such massive accumulation is usually a sign of belief in the long-term prospects of the asset. This mass buying is a sign that deep-pocketed investors are taking advantage of PEPE’s recent price drops to buy huge positions.

Moreover, the wallet’s first funder, an entity that contributed to setting up the crypto whale’s wallet, reportedly invested 612.30 billion SHIB (worth $7.85 million). However, the investment incurred a loss of $4.125 million.

Market analysts view this trend as an impetus of potential price appreciation. “Whales accumulating PEPE at this scale indicates strong bullish sentiment,” noted a crypto analyst. “If more investors follow suit, we could see a breakout above key resistance levels.”

Technical Indicators Point to Potential Breakout

Pepe Coin’s price action suggests a bullish formation, with analysts waiting for a breakout of a decreasing wedge pattern. Traditionally, the pattern provides space for an extensive move to the upside.

A breakout above the wedge resistance can trigger a rally to $0.000015 in the short term, a 55% gain from current levels. Some estimates put PEPE going up to as high as $0.002, a whopping 175% gain if buyers’ pressure intensifies.

The Relative Strength Index (RSI) is also on the mend, moving towards neutral levels after lingering near oversold levels for weeks. Additionally, the Moving Average Convergence Divergence (MACD) indicator remains above its signal line, further bolstering bullish sentiment.

Resistance and Support Levels to Watch

While bullish patterns suggest an optimistic outlook, PEPE still faces key resistance levels. The meme coin needs to break through $0.0000080 and $0.00001 in order to keep moving upward. Failure to break through these levels could lead to a temporary consolidation phase.

On the downside, though, the $0.0000070 level remains a significant support level. Dropping below it may indicate new bearish pressure, potentially dragging PEPE down before another recovery bid.

Investor Sentiment: A Mixed Outlook

Even with the recent price surge, PEPE’s total transaction volume over the last 24 hours fell by 7.78%, indicating that investors are being cautious. While some are negative about the long-term value of the meme coin based on overall market skepticism and history, others believe otherwise.

Nevertheless, the Open Interest (OI) in PEPE derivatives has risen by 8.47% to $273.99 million, reflecting increased speculative demand. The rise shows that investors are speculating on more price action, which is responsible for short-term coin volatility.

Looking Ahead: Can PEPE Maintain Its Rally?

Pepe Coin’s recent surge, coupled with whale accumulation and positive technicals, promises well for near-term gains. However, the token’s sustained momentum relies on it breaching key resistance and maintaining the attention of strong buyers.

As investors closely follow its every move, the next several days will determine if PEPE can sustain this rally as a long-term breakout or if resistance will catch it. Investors should observe price behavior and on-chain indicators before taking significant trading action.