- Whale investment and a cup-and-handle pattern hint at potential bullish momentum for PEPE
- On-chain data and falling MVRV highlighted cautious optimism
A whale’s $2.1 million investment in PEPE has sparked speculation within the crypto community. By purchasing 107.89 billion PEPE tokens at an average price of $0.0000194, the move is a sign of growing confidence in the potential of memecoin.
At the time of going to press, PEPE was trading at $0.00001884, following a modest 1.34% rise over the past 24 hours. However, could this significant buying pressure signal an imminent rally for PEPE, or will the token face resistance that will dampen its momentum?
Breaking the Resistance – Is a Rally on the Horizon?
Memecoin price action has hinted at a potential cup and handle pattern forming on the daily time frame – often a precursor to bullish price movements. In fact, the token appears to be approaching its critical resistance near the $0.00002189 level, as highlighted by the charts.
Breaking this resistance could open the door for a rally towards $0.00003, significantly increasing its valuation. However, failing to exceed this level may lead to consolidation or retracement, making this a pivotal moment for memecoin.
Additionally, the recent entry of the whale has boosted optimism, but sustained momentum will depend on overall market conditions.
Source: TradingView
Are new addresses the engine of PEPE growth?
On-chain data indicated an increase in the number of new and active addresses interacting with PEPE. Over the past week, new addresses increased by 52.79%, while active addresses increased by 57.35%.
This growth can be seen as a sign of increased interest and activity within the memecoin ecosystem. Additionally, the 79.7% increase in zero balance addresses revealed that many traders explored the token.
However, these traders may not yet fully commit to holding significant amounts. Therefore, sustained address growth will be crucial to translating this curiosity into long-term support for memecoin.
Source: In the block
Are trading trends aligning with bullish sentiment?
On the contrary, the transaction data paints a rather mixed picture. Transactions under $10 jumped 28.29%, indicating growing retailer participation. However, transactions above $100,000 fell 35.26% – a sign of limited confidence from large investors.
Therefore, as retail interest increases, balanced participation from small traders and institutions will be necessary for sustainable price increases. Additionally, the lack of whale-sized transactions could hint at the caution of major market players.
Source: In the block
Lower MVRV – What does this mean for PEPE?
The long/short MVRV (Market Value to Realized Value) difference fell to 19.25%, indicating reduced profitability among holders. Such a decline often means traders are less likely to sell at the time of release, potentially reducing selling pressure.
However, MVRV’s bearish trajectory also highlighted the decline in speculative enthusiasm, which could hamper any immediate rebound. Additionally, this indicator highlighted the delicate balance between maintaining investor interest and avoiding overselling.
Source: Santiment
Read Pepe (PEPE) Price Prediction 2025-2026
Can PEPE meet investors’ expectations?
The combination of whale activity, a cup-and-handle pattern, and increasing engagement with addresses provides reason to be optimistic about the future of PEPE.
However, breaking the resistance at $0.00002189 is crucial for any sustainable upward move. If PEPE can build on its current momentum and overcome these challenges, it could achieve a significant recovery.
