Pepe Whales Buying The Dip As The Memecoin Arrests Its Downtrend

Key Takeaways:

• Pepe coin whales bought more than 2 trillion tokens after the price dropped.
• The PEPE coin price downtrend halted after three days.

NEW DELHI (CoinChapter.com) — Pepe coin continued being the favorite of meme coin whales, as three separate wallets bought a total of more than 2 trillion PEPE tokens on May 9.

According to the on-chain analytics tool Lookonchain, the three whale wallets spent just over $4 million for the transaction. “0x2Baa bought 212B $PEPE($429K) with 223 $ETH($412K) at $0.000001942. 0x3AE8 bought 424B $PEPE($864K) with 450 $ETH($831K) at $0.000001957,” the firm stated in a tweet.

The transactions suggest that the hype surrounding the meme token has not declined despite a 58% drop from its May 5 ATH of $0.00000449. Furthermore, PEPE coin was the 5^th most traded cryptocurrency on Binance at the time of writing, indicating traders’ interest in the token.

Besides the whale wallets, musician and tech entrepreneur Jeffrey Huang (Machi Big Brother) purchased 14 billion PEPE tokens on May 10. Huang purchased the tokens in three separate transactions.

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Moreover, the purchase was part of a 3-day shopping spree that saw Huang purchase 66 billion PEPE tokens with a total investment of 73.4 ETH.

However, the NFT collector has previously been associated with certain sketchy projects. Hence, it might be possible the purchases were made to manipulate the PEPE price. Huang could be looking to dump his holdings after pumping the token’s price.

PEPE Coin Price Recovers From Its Downtrend

Meanwhile, the meme token price recovered from its downtrend on May 9. PEPE price has been moving horizontally after recovering slightly during trading on May 8.

On the 4-hour (4H) chart, the crabbing is clearer. Moreover, the 20-4H EMA (red wave) resistance near $0.000002459 seems too strong for the PEPE coin price. Bulls desperately try to hold above the 50-4H EMA (purple wave) support, but the bearish pressure currently outweighs the bulls’ efforts.

If the selling pressure rises, the PEPE coin price might drop to its support level near 0.000001777. Moreover, breaching the immediate support level could force the meme token price to drop over 25% and test the support near $0.000001439 before recovering.

Conversely, breaking and consolidating above immediate resistance might help the Pepe coin price to challenge its resistance near $0.000002581 before retreating.

Meanwhile, the RSI for the PEPE token remained neutral with a negatively sloped trendline, clocking at 44.37 on the 4H chart.