Journalist
Posted:
- PEPE has dropped back to its November 2024 price levels, now trading at $0.000009235.
- A new wallet just opened a 250 billion PEPE position worth $2.31M around the historical level.
The entire market continues to see an extended correction, but memecoins have faced the roughest time compared to other cryptocurrencies. Pepe [PEPE] has not being an exception to this decline.
PEPE’s price has dropped back to its November 2024 price levels, now trading around $0.00000890 after a prolonged sell-off from its December highs near $0.00002800.
PEPE is currently hovering just above the critical sell-side liquidity zone between $0.00000780 and $0.00000840.
This was an area that previously acted as a launchpad for a 238% rally in November 2024, pushing PEPE to $0.00001839.
If history repeats, this zone could provide another strong support level, offering a potential long opportunity. This would be largely possible if price first sweeps liquidity, resting below the sell-side at $0.000006.
Source: TradingView
A strong bounce from this liquidity zone could trigger another move toward the buy-side liquidity resting at $0.00002200, with further upside potential toward $0.00002800.
However, failure to hold above $0.00000600 could result in another leg down, targeting deeper liquidity pockets near $0.00000531 and potentially even lower.
Price sweeps below the sell-side liquidity could confirm the reversal before going long. On the other hand, a sweep of buy-side liquidity near $0.00001785 could signal an ideal exit for profits.
How PEPE whales could determine next move?
Following this drop in price, a new wallet just acquired 249.975 billion PEPE, valued at $2.31M, at $0.00000924. This major buy could indicate smart money accumulation, signaling a potential reversal.
If buyers consider this as smart dip-buying and decide to step in, PEPE could hold above the crucial levels aforementioned, leading to an upward move toward $0.00001050.
However, if it’s just a mid-range entry with no follow-through, price may decline further toward $0.00000880 and below or consolidate between $0.00000900 and $0.00000950.
The next move will be crucial in determining whether this is a bottom or a setup for more downside.
Source: EyeOnChain
Further analysis confirmed the strong correlation between whale accumulation and PEPE’s price movements, as analyst Max noted on X (formerly Twitter).
When the ratio of tokens held by whales to that of held by retail trends upwards, it indicates increased whale holdings. This suggests that PEPE’s price could follow. Conversely, when whales offload to retail, the price declines.
Currently, whales are aggressively accumulating, while retail investors are selling, suggesting a potential bullish move ahead.
Historically, this pattern precedes price surges, making PEPE’s current level an accumulation zone. If this trend continues, PEPE could see an uptrend in the near term.
