As a seasoned researcher with years of experience in the cryptocurrency market, I can’t help but feel a sense of deja vu when analyzing Pepe coin’s current predicament. The correlation between its price and Ethereum is undeniably strong, and the awakening of a long-dormant whale could potentially send shockwaves through the market.
The value of Pepe Coin remains challenging as Ethereum‘s price struggles to surpass crucial resistance points. Notably, Pepe Coin and Ethereum share a significant relationship, with fluctuations in one often mirrored in the other. Over the past 24 hours, Pepe Coin decreased by 6.5%, while Ethereum saw a decline of 5.6%. This downward trend is negatively impacting the increase of Pepe Coin’s price.
The slump in the Ethereum price could be due to a dormant whale waking up and dumping coins on the market, further complicating the Ethereum price rally to $4K, which is already at risk amid division talks surrounding the upcoming Pectra upgrade.
$38M ETH at Risk Could Negatively Impact Pepe Coin Price
An eight-year inactive Ethereum holder with substantial assets seems to be stirring. According to Spot Onchain, it may be preparing to offload its significant Ethereum holdings.
It is possible that a large investor, referred to as a ‘whale’, may have purchased approximately 16,636 Ether at prices below $5 each back in 2016. This transaction was made through the ShapeShift exchange and the Ether was later moved out of it. On the day of this transfer, the value of one Ether was approximately $87,136, which is equivalent to around $5.24 per Ether. Since then, the whale has held onto these Ethers until now, resulting in a massive profit of over 43,600% or 436 times the initial investment in less than ten years.
As an analyst, I’ve recently observed a significant shift in our investments valued at approximately $37.1 million (current market price) to the wallet address “0xe3e”.
There’s a sense of apprehension regarding the future direction, as a massive sale by a significant investor (often referred to as a “whale”) might influence the price of both Ethereum and Pepe tokens.
Correlation With Ethereum Is A Bearish Indicator
Based on information from IntoTheBlock, it appears that the value of Pepe coin tends to follow the trend of Ethereum closely, as their correlation coefficient stands at 0.81. This suggests a strong likelihood that fluctuations in the price of Ethereum may impact the price of Pepe coin.
The chart below shows the actual price action movement of PEPE and ETH in the 4-hour time frame. The PEPE price reacts much more explosively to Ether’s movements, which could be disadvantageous for Pepe coin in the event of a sharp downturn in ETH’s value.
In simpler terms, over the past day, the value of PEPE has decreased by 6.9%. Currently, its position is uncertain because it’s nearing the completion of a prolonged downward trend, which is typically associated with a bear market.
PEPE Price Hangs On The Balance Ahead of Potential Whale Dump
The value of Pepe coin appears to be decreasing as indicated by the clearly defined downward-sloping resistance trendline on its 4-hour chart. This decline in price has been ongoing since May and so far, there have been no significant indications suggesting a reversal of the trend. Furthermore, it seems that the asset is approaching the conclusion of a descending triangle, a pattern often associated with a bearish continuation.
PEPE’s robust support level can be found between approximately $0.00000600 and $0.00000700. On the contrary, resistance is noticeable around $0.00000800. If this trendline gets broken, it could indicate a possible shift from the current bearish trend to a bullish one.
As a researcher examining the PEPE cryptocurrency, if I observe a break and sustained movement above its descending trendline, I would consider entering a long position. This could potentially lead to significant growth, with the value possibly soaring to $0.000001000 or even reaching as high as $0.000001200 and potentially further up to $0.000001700.
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2024-09-16 08:52