PEPE Whales Accumulate Amid Losses: Is This a Signal to Buy?

Whales have accumulated 828.8 billion PEPE despite recent price lows. Could this be a signal for sidelined investors to follow?

Despite recent price lows, PEPE, the popular memecoin, has seen renewed interest from significant players, specifically whales. According to Spot On Chain, two whale wallets, which are likely controlled by a single individual, recently accumulated 828.8 billion PEPE, valued at $6.2 million, from the Kraken exchange on August 17th. This purchase comes shortly after the same whale sold 500 billion PEPE at a price of $0.000008, only to repurchase a larger amount at the lower price of $0.0000074.

Currently, this whale holds a staggering 1.33 trillion PEPE, amounting to $9.93 million, though the overall position is still at a loss of $3.3 million. The question on many minds is whether this whale’s action indicates a buying opportunity for other investors.

Whales hold a significant concentration of PEPE, dominating nearly 49% of its circulation, as reported by IntoTheBlock. This makes their moves crucial to the coin’s price action, especially when compared to retail investors, who hold 27%, and other investors, who hold 23%. The recent accumulation by the whale could suggest that the price of $0.0000074 is perceived as undervalued, potentially signaling a buying opportunity for those on the sidelines.

The Market Value to Realized Value (MVRV) ratio, currently at a negative 13%, supports this view by indicating that PEPE is undervalued, with short-term holders facing losses. Conversely, a positive MVRV would indicate overvaluation and potential selling pressure as holders seek to realize profits.

Additionally, PEPE’s Open Interest (OI) rates topped the charts among memecoins over the weekend, likely driven by the recent whale activities. This suggests an influx of liquidity into PEPE, a factor that could positively impact its price.

Looking ahead, the daily charts show that the Moving Average Convergence/Divergence (MACD) indicator is on the verge of a bullish crossover, which might signal the beginning of an uptrend. Should this occur, the immediate bullish target for PEPE could be the 61.8% Fibonacci retracement level at $0.000009, with key support at the 78.6% Fib level of $0.0000068.

However, it’s important to note that the market structure remains bearish, with demand for PEPE still flat, as evidenced by the Relative Strength Index (RSI), which hovers below the neutral level. PEPE bulls should watch for a decisive break above the $0.000009 supply level, as this could flip the market structure to a bullish stance and suggest an extended recovery.

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