- The Pepe coin price correction is gradually heading to the apex of a falling wedge pattern, indicating a decisive breakout loading in near time.
- Top 100 wallets accumulated 23.02 trillion PEPE during the recent market downturn.
- The potential recovery in this memecoin could face overhead resistance at $0.00000528, followed by $0.00000740.
The frog-themed memecoin, Pepe, is down 4.16% during Tuesday’s U.S. market session to trade at $0.00000368. This downtick aligns with broader market pullback as Bitcoin faces renewed selling pressure at $71,000. While the crowd remains pessimistic, the top wallets in PEPE show a surge in buying pressure, signaling that this memecoin is poised for a bullish breakout.
Whales Accumulate PEPE Amid Broader Meme-Coin Selloff
Pepe coin (PEPE), the popular memecoin has witnessed a notable correction from in the past few months. From its peak of about nine months ago, the total market capitalization of the project has declined by about 73%, in line with the pressure across the meme coin space and periodic corrections in the crypto market.
Data from on-chain analytics shows a noticeable change in behavior of holders about four months ago, happening to align with a heavy market downturn in October. During this time, the top 100 wallets have gradually added to their positions, adding a total of 23.02 trillion PEPE tokens.
Large holders, often known as smart money in crypto circles, will often affect the direction of price movement for altcoins through such positioning. Their buying activity during downturns has historically been the precursor to better recovery in a variety of tokens when broader market conditions can improve.
At the moment everyday investors are quite bearish on PEPE and similar meme stocks, as reflected in discussing the community and sentiment indicators.
The derivative market data further highlights the declining speculative force for PEPE. According to Coinglass, the open interest tied to PEPE’s futures contract has recently plunged to a multi-month low of $202.5 million.
This decline can be attributed to a series of long liquidations triggered due to the recent market. The downtrend remains persistent as traders hesitate to open new long contracts in futures markets that often support strong price recovery.
Pepe Coin Price Eyes Major Rebound Within Wedge Formation
Over the past months, the Pepe coin price showed a significant correction from $0.00000724 to $0.00000365, registering a loss of 49%. A deeper analysis of memecoin’s daily chart shows this pullback as a typical bear cycle within the formation of a falling wedge pattern.
The wedge formation consists of two downsloping trendlines in a converging manner as they indicate gradually weakening of prevailing bearish momentum. Each swing within the pattern leads the price to the apex of trendline, bolstering its position of a strong breakout.
Following the recent market sell-off, the PEPE coin price retested the pattern’s bottom trendline to regain recovery momentum. The momentum indicator ADX reinforces the wedge pattern as its value at 41% suggests the strong bearish momentum, but the high value also suggests that sellers could hit exhaustion too.
PEPE/USDT -1d ChartThus, a potential rebound from the bottom trendline could push the PEPE price over 34% to reach $0.00000424 and challenge the overhead trendline. A bullish breakout from this resistance is key for buyers to signal the end of ongoing correction.
Also Read: CZ Clarifies Binance Holds All Stablecoins Amid USD1 Controversy
Source: https://www.cryptonewsz.com/pepe-coin-price-as-downturn/
