PEPE Coin Soars by 50%: Analyzing the Whale-Backed Rally and Future Outlook

[TL; DR]

PEPE gained by over 50% during the fourth week of April which raised hope for a bull run.

A strong Bitcoin rally in coming weeks may create a market-wide bullish outlook.

The current market outlook indicates that the smart money investors who acquired PEPE in April May earn much profit in the near future.

Introduction

Most cryptocurrencies are under loss less than two weeks after the much heralded bitcoin halving. However, the fact that the market is depressed does not show that the aftermath of the halving event is against the market expectations. In fact, some analysts predicted that bitcoin would get into a bearish period soon after its halving but will rally later on which will pull the other cryptocurrencies like PEPE with it.

There are several reasons that have led to the current crypto market fall. For example, the Middle East geopolitical situation is impacting the performance of cryptocurrencies as it brings uncertainty in the market. The legal battles between the United States SEC and crypto project leaders like Changpeng Zhao and Samourai Wallet founders may also have a huge bearing on the current crypto market sentiment.

Nevertheless, the aim of this article is to analyze the current and future PEPE coin price movements. We will also look at the impact of whale activity on PEPE’s market dynamics. Lastly, we shall cover the PEPE coin’s short term price prediction.

The Surge in PEPE Price: Dynamics behind PEPE Coin’s Recent Rally

Since the beginning of the year the PEPE coin’s price performance has been characterized by minor dips and strong bounces. For example, in the 24-hour period that stretched from 23 to 24 April there was a PEPE coin price surge of about 18.5% which led the token to trade at around $0.0000080. All in all, during that week PEPE gained by more than 50%. Such a price surge resulted in a PEPE coin market capitalization of $3.31 billion which has helped to position it as the 37th largest cryptocurrency.

During the same 24-hour period the token’s trading volume surged by 62% to reach $1.64 billion. At the time of writing, investors can buy PEPE at 0.000008776, after it gained by 13% within one day. The next graph shows the PEPE memecoin market performance within the last 1 month.

PEPE Price Performance for the Period 6 April to 4 May - CoinGecko

As The Graph indicates, the PEPE memecoin price surge started on 20 April and is continuing. So far, the altcoin has gained by 70.6% within the last 7 days and 24.6% within the last 30 days. This indicates the strength of the memecoin market rally that started on 20 April, the bitcoin halving date. The expectation of a market-wide rally after the halving event may be influencing its current price rise.

Read also: PEPE Claims Throne of meme Coins

The short-term PEPE coin liquidations could be another factor behind its current price trajectory. Notably, during the third week of April PEPE coin open interests rose by 9.35% to $64.59 million. Short positions worth $1.15 million out of a total figure of $2.12 million were liquidated.

Another reason that might have contributed to the PEPE memecoin market rally was the listing of PEPE perpetual contracts on Coinbase on 23 April. The perpetual contracts which Coinbase introduced have no expiry dates and mirror the underlying market’s performance. Basically, PEPE performed very well in March. During that period the altcoin price surged from $0.000002738 to $0.00001074, its all-time high.

Read also: PEPE Skyrockets By 1000% – How Did This Frog Go Viral?

How whale investors impact PEPE’s market position

The current memecoin whale activity is another factor that has sustained the on-going PEPE bullish rally. Based on the present cryptocurrency investment trends there is a high indication that whale activities are responsible for most sustained price rallies. The reason is that many crypto whales are adding PEPE to their investment portfolios, bolstering its on-going bullish momentum.

According to Santiment, during the last two weeks whales acquired over 3.3 trillion PEPE valued at around $24.3 million. As a result, the whales now hold over 46.96 trillion PEPE meme coins. The rise in whale PEPE holdings has created a strong support level to prevent any price fall.

As per Spotonchain X post, the wallet address “rektdolphin.eth belongs to a PEPE memecoin whale that has been acquiring the coin in large amounts. For example, within a 24-hour period that stretched from 24 to 25 April this crypto whale acquired 211.6 billion PEPE tokens, worth around at $1.72 million at the prevailing market price.

Source: x.com

Lookonchain has highlighted the activity of another PEPE whale by the name James Wynn. Wynn, a memecoin trader and investor, acquired 2.83 trillion PEPE at a total cost of $8,524. Nonetheless, he has already sold 1.81 trillion tokens, for $4.57 million.

Read also: Meme Coin Mania Back? PEPE and WIF Rally

Source: x.com

At the moment, Wynn holds 1.02 trillion PEPE, probably waiting for its price to rise. Many of these PEPE investors are purchasing the tokens at Gate.io, Binance and Uniswap. Essentially, it is this PEPE investors’ conviction that continues to sustain its bullish momentum.

PEPE Price Predictions and Market Resistance

Although PEPE managed to escape a descending wedge it still faces much resistance on its path towards $0.00001. As of now, the altcoin’s closest key resistance levels are at $ 0.000008407, $ 0.000008716, $ 0.000009182. Once it overcomes these, it may head straight to $0.00001.

On the other hand, its key support levels are at $ 0.000007633, $ 0.000007168 and $ 0.000006859. As you note, an increase in the PEPE’s bearish pressure may push its price below $ 0.000007633 which is its first strong pivot point. Further bearish pressure may drive its value past $0.00000633 as it moves towards $0.00000474. The following graph shows PEPE memecoin’s price prediction chart for May.

PEPE Price Prediction for May 2024 - CoinCodex

The above graph shows the altcoin growth prospects with its next price target being $0.00002949. Therefore, the continued whale investments in PEPE may propel its price towards that price level.

What PEPE’s Rally Means for Investors: Strategies and Considerations

Basically, the PEPE price trajectory points to a bullish rally that may go beyond May. The next graph illustrates PEPE’s next possible price move.

PEPE Rally – TradingView

As we note on the diagram, the PEPE altcoin is best positioned for a sustained rally. The current token’s MVRV ratio also indicates a potential price rise. As of 2 May PEPE’s MVRV was at 4.86% which suggests that the tokens acquired in April are in a profitable position.

If bitcoin supports a market-wide bullish outlook there is a high probability that PEPE’s price may surge for several weeks or months. With this in mind, the smart money investors who buy meme coins now may generate profit in the future. The best strategy for the whales could be to hold their PEPE meme coins for a longer period to increase their profits.

Conclusion

PEPE meme coin’s price surged by over 50% on 24 April which further confirmed its current bullish momentum. Ever since that time, the altcoin has been gaining day by day, despite some minor dips. In light of PEPE coin’s present momentum, smart money investors may hold on to it for a longer period with the aim of generating more profits.