Pepe coin (PEPE) is experiencing a notable turnaround, recovering from lows hit earlier this month amid significant investor interest, improved whale accumulation, and broader market acceptance of blockchain assets.
PEPE’s return comes after a period of volatility and falling value. In the past week alone, PEPE has risen by almost 50%, from $0.0000083 to around $0.0000120, thanks to a significant increase in investor confidence.
PEPE, currently trading at $0.00001183, has shown a remarkable recovery from the low of $0.00000765 reached on July 5. Below are the reasons why its valuation has been steadily increasing.
Market sentiment
Market sentiment around PEPE has turned cautiously positive. X analysts believe that PEPE will continue to increase in value, supported by general market conditions and specific events.
For example, the recent political turmoil involving former President Donald Trump has caused a surge in cryptocurrency prices. Undoubtedly, memecoins related to the former president are experiencing strong demand, in addition to benefiting the growth of other memecoins such as PEPE.
Increased whale accumulation
A major factor behind the recent PEPE price rally is the substantial increase in whale accumulation. Whales, or large PEPE holders, have been aggressively expanding their holdings, betting on the long-term value of the coin.
According to a report by Binance.com on July 16, Nascent, a prominent entity in the crypto space, recently swapped its $MKR positions for $PEPE and $LDO. Specifically, Nascent deposited $1,215 MKR on Binance and withdrew $141.23 billion $PEPE ($1.57 million), $281,000 $LDO ($503,000), and $3.4 million $USDT from Binance. Nascent now holds a significant sum of $608.85 billion $PEPE, equivalent to $7.49 million. This strategic reallocation by a major player underscores the growing confidence in PEPE’s market position and the potential for further appreciation.
Greater market acceptance and liquidity
The US SEC’s “preliminary approval” for ETH spot ETFs has led to broader market acceptance of blockchain-based assets, particularly those related to . PEPE, which is also a token based on the Ethereum blockchain, is benefiting from strong market interest in Ethereum-based tokens.
The potential increase in liquidity and public exposure due to Ethereum ETFs is expected to continue to drive the price of PEPE higher. As more investors recognize its technological advancements and broader ecosystem support, the value of the meme coin is likely to benefit from these favorable conditions.
Large holders reduce their holdings of PEPE
Despite the positive momentum, on-chain analytics reveal that the largest PEPE holders have dumped a substantial amount of their holdings over the past 30 days, according to IntoTheBlock. Addresses holding between $100,000 and $10 million worth of tokens have seen significant selling. This trend suggests that while small investors are gaining confidence, large holders are hedging their bets. The dynamic between increasing whale accumulation and large holder sales adds a layer of complexity to the PEPE market outlook.
What's next for PEPE?
PEPE’s Relative Strength Index (RSI) which stands at 59.27 and is approaching the overbought territory indicates high buying interest. At this level, it also shows significant buying interest that could sustain the rally. If market conditions remain favorable, the bullish momentum of the coin is likely to continue.
