- PEPE whale swapped their holdings for WETH then into PENDLE.
- PEPE’s setup signaled a big move off the lows was yet to come, as it needed to reclaim the 50 level on the RSI for a confirmation.
Pepe [PEPE] whale wallet ‘0x373…’ changed from investing in memecoins to investing in DeFi fundamental. This whale offloaded 196.1 billion PEPE tokens worth $1.3 million at an average price of $0.000006641.
The whale exchanged PEPE for 720.6 WETH and used the entire amount to purchase 397,192 PENDLE tokens at $3.08 each. Over three days, the whale sold 261.2 billion PEPE for 1,060 WETH, averaging $0.000006909 per token.
The 1,060 WETH, valued at $1.86 million, was then utilized to acquire 607,863 PENDLE tokens at an average price of $3.066. This sparked concerns about a potential PEPE crash, as the whale’s activity showed no signs of slowing down.
Despite reducing their holdings, the whale retained 2.597 trillion PEPE worth $17.53 million, with unrealized earnings of $28.41 million—a remarkable 5.25x return.
Source: EyeOnChain
The whale’s actions could influence PEPE’s price but could be stabilized by retail interest during sell-offs. These enhanced accumulations of PENDLE by large-scale wallets showed the potential to boost its positive market trend.
This distribution pattern indicated uncertainty whether retail consumers could adopt a more lasting investment trend or a temporary buying approach.
Will struggles in price action continue?
Despite the sell-off, PEPE hinted at a potential bullish reversal as its price rebounded from a key support range between $0.000000500 and $0.000000700.
On the 5th of August 2024, intense buying activity was observed at this price point, suggesting that similar trends might occur in 2025.
A potential bullish recovery emerged in the green mid-zone, ranging from $0.00000070 to $0.000000800, as the daily RSI hovered near the lower boundary close to 50.
Historically, significant rallies followed when the daily RSI climbed above 50 after dropping to the oversold area near 30. However, rejections of the RSI around the 50 level repeatedly triggered downward price movements.
Source: TradingView
A breakthrough above the 50 could cause an intense price movement toward the following resistance zone at $0.00000120. Failure to maintain above $0.00000080 as support would potentially result in a testing of the lower support levels.
PEPE could return to trade at $0.00000040 if the price level dropped below $0.00000060 for a second time.
However, a breakout above $0.0000010 could spark a reversal yet failure to flip the zone would typically lead to trapping of new buyers who countered a bear market.
PEPE holders and volume/market cap ratio
Despite the whales’ sell-off, generally, recent months saw rising retail investor interest in PEPE as its adoption reached the 560 new holders mark.
PEPE also maintained its position among the top 10 cryptocurrencies in terms of daily trading volume.
Source: X
This way, PEPE maintained an elite position regarding the 24-hour Volume-to-Market Cap Ratio, which placed it at one of the leading positions among the top 100 cryptocurrencies.
Positive trends suggested that there could be potential stability in rising if this becomes a momentum-seeking trend. However, any new buyer, unable to continue in the book, could once again destabilize or even lead the market further to a price slide.