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A trader who previously made an 886% return from buying PEPE is purchasing the meme coin again. This trader had initially bought 170 billion tokens in October 2023.
When they sold their holdings in July, they gained $1.77 million. The question now is whether this recent accumulation could yield similar results.
Pepe Big Players Reinvest in the Meme Coin
Earlier today, Etherscan data revealed that a market participant spent 1.34 million USDC to buy 173 billion PEPE tokens. Such large purchases often suggest a potential price increase may be on the horizon.
Historically, PEPE’s price tends to rise following large buys like this one. However, this isn’t the only major purchase the meme coin has seen in the past 24 hours.
According to Lookonchain, a wallet linked to the crypto asset investment management firm Ceffu bought 1.48 trillion PEPE tokens valued at $11.6 million. This brings the total accumulated tokens to nearly 2 trillion in just one day.
Read more: How To Buy PEPE and Everything You Need To Know
Furthermore, Pepe’s adjusted price Daily Active Addresses (DAA) metric appears to support the idea that a significant price increase could be approaching. The DAA measures how frequently users engage with a cryptocurrency.
An increase in DAA is generally seen as a bullish signal, indicating growing user participation, while a decrease suggests reduced engagement, which could be bearish. When analyzed alongside price movements, the DAA provides insights into whether it might be a good time to buy or sell.
If the price of a cryptocurrency increases while user engagement falls, it typically signals that it might be time to sell. However, Pepe’s price has dropped by 32.94% over the last 30 days. The recent increase in its DAA suggests that the meme coin might have hit the bottom, and it is time to buy at discount prices.
PEPE Price Prediction: The Race Back to $0.000012 Begins
PEPE’s price currently stands at $0.0000078. However, according to the daily chart, the token could trade higher as a new month approaches. The image below shows the formation of a falling wedge.
The falling wedge is a bullish pattern that appears when a cryptocurrency’s price loses its hold on the uptrend. During the same period, buyers capitalize on the downtrend while the price begins to move up slowly.
To validate this prediction, PEPE bulls have to defend the support at $0.0000071. Besides that, there is an upper-level resistance at $0.0000095 that the meme coin must breach to continue increasing.
Read more: PEPE Price Prediction 2024/2025/2030
If successful, PEPE’s price could rally in an incredible way, potentially reaching $0.000012. However, the token’s inability to break above the resistance could invalidate this bull’s thesis. Should that happen, the meme coin might establish a new low of around $0.0000067.