- Whale purchased 1.79 trillion PEPE tokens worth over $22 million from Binance amid a bearish market downturn.
- PEPE’s volatility surges as Bollinger Bands widen, signaling potential for sharp price movement in the short term.
- PEPE historically performs strongly in May, with no previous monthly losses since 2023 and current MTD growth at 40.4 percent.
The memecoin sector has experienced a market-wide correction, with its total capitalization falling by 6.14 percent to $66 billion. PEPE, one of the leading memecoins, saw its price decline by 8.64 percent within 24 hours. The token was trading at $0.00001246 during the time of analysis.
Data from Lookonchain reveals that a previously inactive whale wallet has resumed activity after two years. This wallet created a new address and withdrew 1.79 trillion PEPE tokens from Binance, valued at over $22 million. Notably, this whale had no prior record of holding the frog-themed coin before this move.
Market impact of whale activity on PEPE
The size and timing of this purchase have led to concerns over a potential liquidity crunch in the market. Increased whale transactions are often interpreted as indicators of anticipated market movement. The recent uptick in whale activity coincides with growing expectations of a breakout in PEPE’s price performance.
Technical data from TradingView indicates increasing volatility in the PEPE market. The Relative Strength Index currently stands at 63.23, showing the token is nearing an oversold condition. The Bollinger Bands have expanded significantly, reflecting increased market fluctuations, last seen to this extent in late January.
Historical data supports bullish expectations
According to data from Cryptorank, PEPE has historically performed well during May. Since its launch, the token has not posted negative returns for this month. The average return for May is recorded at 82.3 percent. With a 40.4 percent growth Month-to-Date, there is a possibility the coin could surpass records if current trends persist.
Other prominent memecoins like Dogecoin and Shiba Inu are also experiencing short-term drawdowns. However, each token appears to be tracking its ecosystem trends. Market analysts continue to monitor these developments closely, anticipating possible breakout rallies across the board.
