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PEPE price steadied around $0.000079 on Aug 14, reflecting a 31% decline in the first half of August 2024. Despite favorable developments like Grayscale launching new cryptocurrency trusts and the release of dovish CPI data, on-chain data shows a significant drop in whale demand for PEPE.
PEPE Price Tumbles 31% in August 2024
PEPE had a rough start to August, reaching a three-month low on August 5. Although the broader crypto market recovered in the second week of August, buoyed by the approval of Solana ETFs in Brazil and Grayscale’s introduction of new crypto asset offerings to its U.S.-based clients, PEPE’s rally proved short-lived.
Between August 5 and August 9, PEPE experienced a brief uptrend, but recent developments indicate that the rally was merely a fake-out.
As shown in the chart above, PEPE has registered losses in each of the last three trading days. Zooming out, the monthly timeframe reveals a 30% loss as of August 15.
The dovish U.S. CPI data release failed to lift the crypto markets, as investors initially directed their focus toward the stock markets. Consequently, crypto markets, including PEPE, stumbled following the CPI data release on Wednesday, raising concerns of a sharp correction. PEPE’s price has fluctuated within this context, and with whale investors reducing their demand, the cryptocurrency seems poised for further declines.
Whale Investors Missing in Action
This downward trend is further exacerbated by a significant decline in whale demand for PEPE. The number of large transactions, as depicted in the chart above, has plummeted from 544 transactions on August 5 to just 77 on August 14. This 85% drop in large transactions highlights the bearish sentiment among major investors.
The decline in whale activity has severely impacted PEPE’s price and limited its ability to rebound in recent days. If this trend persists, PEPE could face further downward pressure in the coming days.
PEPE Price Forecast: Cracks Emerge Around $0.00008 Support
PEPE’s current price action reveals significant cracks around the $0.00008 support level. The recent bearish momentum, coupled with the decline in whale activity, suggests that this support level is under threat.
As indicated by the Bollinger Bands, PEPE’s price has been trending toward the lower band, signaling increased selling pressure. The Parabolic SAR dots have also flipped above the price, reinforcing the bearish outlook.
If the $0.00008 support level fails to hold, PEPE could see further declines, with the next key support level around $0.00006. On the upside, resistance is expected around $0.00009, but with the current market sentiment, a significant rally seems unlikely. Traders should be cautious, as the bearish indicators suggest that PEPE’s price could continue to trend lower in the near term.