Whale Accumulation of PEPE from Kraken Signals Potential Price Rebound

• Whales have recently accumulated a significant amount of PEPE from Kraken.
• This has raised questions about whether whale actions will trigger a price rebound for the cryptocurrency.
• Two whale wallets acquired 828.8B PEPE, valued at $6.2 million, from Kraken, sparking renewed interest in the token.

Two whale wallets accumulated 828.8B PEPE coins from Kraken, causing speculation about a potential price rebound. Can these whale actions drive a significant recovery in the value of PEPE?

Increased Whale Activity in PEPE

On 17th August, two significant whale wallets, believed to belong to a single entity, made a notable purchase of 828.8 billion PEPE tokens from Kraken. These wallets had previously sold 500 billion PEPE and then repurchased a larger quantity at a lower price, illustrating a strategic move to capitalize on the cryptocurrency’s recent price dip. The whales currently hold a substantial 1.33 trillion PEPE, despite facing a $3.3 million loss on their investment.

Market Impact of Whale Holdings

Whale activities in the PEPE market are noteworthy due to their potential to influence prices. Data from IntoTheBlock indicates that whales control nearly 49% of PEPE’s total circulation. This concentration of holdings means that any significant whale transactions can lead to price fluctuations, impacting retail and institutional investors alike. This market dominance underscores the critical role of whales in the PEPE ecosystem.

Analyzing PEPE’s Current Valuation

The Market Value to Realized Value (MVRV) ratio for PEPE recently registered a negative reading of -13%, signifying that the token was undervalued. Short-term PEPE holders, holding the token for the past 30 days, are currently at a loss. This undervaluation presents an opportunity for potential investors to acquire PEPE at a relatively low price, suggesting a ‘buy’ signal. However, it’s crucial to consider market dynamics and speculative risks before making investment decisions.

Liquidity and Open Interest Trends

Over the past week, PEPE has led in Open Interest (OI) rates among memecoins, dominated by recent whale activities. This influx of liquidity into PEPE could serve as a positive catalyst, potentially driving upward price movements. The increased OI indicates heightened interest and engagement from the trading community, which could enhance PEPE’s market performance in the short term.

Technical Analysis: Signs of a Potential Uptrend

The daily charts for PEPE reveal a possible bullish crossover in the Moving Average Convergence/Divergence (MACD) indicator, suggesting the onset of an uptrend. A move towards the 61.8% Fibonacci retracement level, corresponding to $0.000009, is the immediate bullish target. Conversely, the 78.6% Fibonacci level at $0.0000068 serves as crucial short-term support. Despite the bearish market structure, a breakout above the $0.000009 supply level could signal a shift towards a bullish trend and extended recovery.

Conclusion

Whale activities have put PEPE back in the spotlight, raising questions about potential price movements. While the concentration of whale holdings suggests significant market influence, the current undervaluation and liquidity trends offer mixed signals. Investors should monitor technical indicators and market developments closely to navigate the volatile PEPE landscape effectively.