In March, the volatile cryptocurrency market witnessed substantial gains, particularly among altcoins, some of which saw their value increase by more than five times within a six-day span. Such fluctuations are common in the crypto space, with rapid price movements that can catch investors off guard.
Whales’ Buying Spree Propels PEPE Coin
PEPE Coin emerged as a standout performer, with a price surge attributed to heavy buying from large-scale investors, commonly referred to as whales. Within ten days, these investors purchased 48 trillion PEPE, representing a notable chunk of the $385 million trading volume. These purchases played a significant role in the meme coin’s 506% jump to $0.00000820, marking its second highest price peak after its listing on the Binance exchange.
The coin’s rise also mirrors a broader trend where 37% of its circulating supply is held by short-term speculators. These investors, known for their quick trading strategies, suggest an undercurrent of speculative demand in the market alongside Bitcoin‘s own rapid ascent.
Uncertain Future: Price Stability In Question
Despite the recent rally, PEPE Coin’s sustainability is under scrutiny. Given its reliance on short-term holders, who’ve been in possession for less than a month, the potential for a sharp sell-off is apparent. Should these investors decide to cash out, the influx of 48 trillion PEPE could exert downward pressure on prices.
Technically, PEPE Coin’s price may undergo further adjustments, potentially retesting lower support levels. Trading indicators like ADX and MACD currently suggest optimism for continued growth, but only if the coin establishes firm support at higher price points. Should selling increase, PEPE’s value might experience another significant drop. Conversely, establishing support could sustain its upward trajectory.