- Despite the accumulation, the average PEPE investor is staying on the neutral side of the market.
- Some PEPE whales bagged billions of tokens, suggesting a price increase in the near term.
- The NVT ratio indicated that PEPE’s price might decrease before the potential pump.
PEPE investors are accumulating and holding on to their tokens, indicating a potential price increase in the near future. However, the NVT ratio suggests a possible price decrease before the pump.
Large PEPE Accumulations
Four different investors bought large sums of Pepe [PEPE] in the last 24 hours, a post from Lookonchain revealed. From the post and proof from Etherscan, a certain participant withdrew 350 billion PEPE tokens from Binance [BNB]. This withdrawal confirmed a decision to hold the token instead of selling it in the short term. Within the same period, another buyer took out 101 billion, valued at $885,000 from the exchange.
Implications of Large Accumulations
When such large accumulations occur, it implies that the participants involved are gearing up for a significant price increase. Past events have also shown that this sort of accumulation foreshadows a rise in PEPE’s value. At press time, PEPE changed hands at $0.00000875, representing a mild 1.32% increase in the last 24 hours. However, the token could jump more than that.
Exchange Flow and Weighted Sentiment
According to data from Santiment, 63.55 million PEPE tokens have left exchanges within the last day. On the other hand, 2.48 million have flown into the platforms. The notable difference in exchange inflow and outflow suggests that more investors are willing to hold the memecoin than those planning to sell. With this update, one can imply that PEPE might not experience a significant plunge soon. Instead, the price of the token could be getting set for a rerun to $0.000010.
NVT Ratio and Market Outlook
Despite the possible price increase, market participants were not convinced that PEPE’s rally could be close. The Weighted Sentiment, which measures the unique comments about a project— either negative or positive, was 0.265. Being in a positive region implies that most comments about the memecoin were positive. However, this reading was a decline from what it was on the 9th of May, meaning the optimism was losing steam. But as long as the sentiment has not turned negative, PEPE has a chance to bounce. However, the NVT ratio spiked to 79.95.
Conclusion
PEPE’s NVT ratio’s increase implied that the market cap growing at a faster pace than the volume, indicating that the price might trend downward first before a significant jump. Therefore, while PEPE investors are accumulating and holding, the market outlook suggests a potential dip before a price pump.
