PEPE Coin Struggles Despite Whale Purchases: Is the Bearish Trend Over?

• Whales have acquired over 480 billion PEPE coin tokens in 24 hours, signaling potential long-term interest.
• Retail traders scale back exposure to high-risk assets amid growing market uncertainty. While whales taking advantage of that.
• Whale accumulation sparks intraday optimism, but technical indicators show a continued downtrend.

Recent blockchain data highlights significant whale activity in the PEPE coin market, with two prominent addresses acquiring over 480 billion tokens within a 24-hour span.

These buys come as the PEPE price is near its monthly lows. This suggests rising bullish interest amid a weak market.

One whale, identified as “0x8f5,” alongside PEPE coin, previously amassed 47.4 million $JASMY tokens, which were valued at $1.54 Million. This whale’s transaction suggests a strong sense in his strategy, driving his focus into meme coins rather than any smaller altcoins.

Meanwhile, another whale, wallet “0xb1a,” made a substantial move by purchasing 200.4 billion PEPE coin tokens for $3.72 Million in the last 30 minutes. This address is known for its previous PEPE coin transactions; it had incurred a $1.45 Million loss on its prior trades.

At present, PEPE crypto is priced at $0.00001722, marking a 25% drop over the past week and a 40% decline over the last month. This follows a significant selling event from the previous week.

Despite the large purchases by major holders, market sentiment remains cautious, with short positions continuing to dominate, although long leverage positions have increased. Still, technical indicators suggest a more bearish trend, even as some traders show renewed interest in the asset.

Retail Traders Reduce High-Risk Assets Exposure, Long-Term Investing Whales Take Advantage

Meme coins are known for their extreme volatility, and PEPE crypto is a prime example. In Q1 2024, PEPE price experienced a meteoric rise, soaring from $0.00000086 to $0.00002847, representing an increase of over 3000%.

However, similar to Bitcoin and other leading cryptocurrencies, the PEPE coin suffered a significant decline in December.

As January 2025 unfolds, bearish sentiment is dominating the market, pushing the PEPE price below both its 20-day and 50-day EMA levels. This signals persistent weakness.

Infact, over the past month, PEPE coin has lost more than 40% of its value, and this week alone, it dropped by over 25%. Intraday fluctuations were even more dramatic, with Bitcoin briefly dipping below $89K before quickly rebounding above $95K, fueled by strong buying activity.

This sudden movement raised suspicions of market manipulation by large players. This is evident in the slight recovery of both Bitcoin and PEPE prices.

The ongoing bearish pressure on PEPE coin suggests that many traders are scaling back their exposure to high-risk meme coins in the face of broader market instability. Meanwhile, large whales seem to be capitalizing on the situation.

As the whales are taking advantage of the price dips to position themselves for potential long-term gains.

Will the Bulls Take Control?

Concerns over tightening financial conditions and reduced liquidity have prompted many risk-averse traders to scale back on high-risk assets like PEPE crypto. This has intensified bearish pressure, with some short traders worsening the situation.

According to the 7-day chart, it is been evident that these traders wanting PEPE coin to fall more. They have strategically increased their leverage to capitalize on the prevailing bearish market sentiment.

Similarly, it is also evident that the drop in the PEPE price closely aligns with broader downturns in the cryptocurrency market. That seems to have been driven by growing macroeconomic uncertainty.

But, bearish traders have significantly increased their positions, deploying $28.19 Million in leverage, betting on further PEPE coin price declines. On the other hand, there is a sharp contrast to just $7.40 Million in long positions, which are hoping for a market rebound in 7-day chart.

Likewise, this heavy focus on short positions is the reason why PEPE crypto has dipped so low this month. It also highlights that many traders are leveraging aggressively in anticipation of sharp falls in the PEPE price.

However, the recent whale accumulation has sparked some intraday optimism. Continued accumulation could potentially shift the market dynamics.

As seen on the 1-day chart, the bulls are currently in a more favorable position, with $11.43 Million in long liquidations, outpacing the $6.14 Million in short positions.

If bulls overcome the short leverage seen on the 7-day chart, it could ease the bearish pressure and allow bulls to regain control.

Despite Massive Whale Accumulation, PEPE Price Technicals Shows Strong Bearishness

Despite recent whale purchases, PEPE coin price has only risen by 2%, and it continues to hover near the neckline of a bearish pattern. Following Bitcoin’s correction from its mid-December 2024 peak of $108K, PEPE price has mirrored the downturn.

Amid the price action build-up, the downturn faced significant resistance from a dynamic declining trendline. Thefore, the bearish pressure from the trendline explains the head-and-shoulders pattern.

Notably, in this pattern, if the neckline is breached, a further decline is anticipated further. That fall could take the PEPE coin towards the initial target at the 200-day EMA at around $0.00001414. Should this level fail to hold, the next key support is at $0.00001000.

Moreover, in PEPE price daily chart, all technical indicators align with a bearish outlook. The Chaikin Money Flow, for instance, known as CMF, has shown a slight improvement from -0.16 to -0.13, yet it remains below the zero line, indicating continued selling pressure.

The RSI is approaching oversold territory, currently at 42.02. Even momentum-based indicators like the MACD and AO are both showing declines below the zero line.

Also, the MACD has formed a bearish cross, reinforcing the downtrend and hinting that further bearish momentum is likely until the PEPE coin breaks above the dynamic trendline.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.