PEPE, a cryptocurrency, has recently witnessed a notable surge in its price, soaring by 7.60% to achieve an all-time high of $0.00001725, as reported by CoinGecko. This remarkable price increase is particularly noteworthy as it amounts to an impressive 88% surge since the U.S. Securities and Exchange Commission (SEC) approved the Ether ETF filings on May 20.
Amidst this bullish market sentiment, there has been a discernible trend in the supply dynamics of PEPE tokens. Specifically, the supply held by entities with balances exceeding 1 billion tokens, colloquially referred to as “whales,” has seen a notable decrease. This decline indicates that these significant holders have been strategically capitalizing on local price peaks by divesting their holdings. Conversely, the supply of PEPE tokens held by smaller investors has seen an uptick.
Intriguingly, despite the selling pressure exerted by larger holders, certain traders have opted to withdraw substantial amounts of PEPE tokens from exchanges following the recent price surge. Notably, one astute trader stands out, having transformed an initial investment of $250,000 into a staggering $2.42 million.
According to insights provided by Lookonchain, a blockchain tracking platform, this trader embarked on accumulating 160.62 billion PEPE tokens on December 6 and 7, 2023. The investment strategy paid off handsomely when the trader eventually liquidated all holdings for 644 ETH, equivalent to approximately $2.42 million. Such an achievement underscores the remarkable potential for substantial returns within the cryptocurrency market, with this particular investment yielding an impressive 867% return on investment (ROI).
However, despite the bullish sentiment surrounding PEPE, there are indications of potential consolidation in its price action. Currently, PEPE’s price is oscillating around its moving averages, with both the 50-period and 200-period moving averages closely intertwined. This convergence suggests an impending consolidation phase. Additionally, the Relative Strength Index (RSI) stands at 54.29, indicating a relatively neutral stance and a lack of pronounced momentum in either direction.
Moreover, PEPE’s price action has been constrained within a narrow range, with support observed at 0.00000165 and resistance near 0.00000172. This tight price action signals a consolidation pattern, wherein PEPE is trading within a confined range. Investors are advised to monitor closely for any potential breakout above the resistance level. Nonetheless, PEPE appears susceptible to continued consolidation as it navigates amidst balanced pressures from both bullish and bearish sentiments.
This comprehensive analysis, originally reported by Jai Hamid for Cryptopolitan, sheds light on the recent developments and potential outlook for PEPE within the dynamic cryptocurrency market landscape.