A trader who previously made 886% profit from buying PEPE is buying the meme coin again. This trader initially bought 170 billion tokens in October 2023.
When they sold their holdings in July, they netted $1.77 million. The question now is whether this recent accumulation can produce similar results.
Pepe Major Players Reinvest in Meme Coin
Earlier today, Etherscan data showed that a market participant spent 1.34 million USDC to buy 173 billion PEPE tokens. Such large purchases often indicate that there could be potential price growth on the horizon.
Historically, the price of PEPE tends to rise after large purchases like this one. However, this isn’t the only large purchase the meme coin has seen in the last 24 hours.
According to Lookonchain, a wallet linked to crypto asset investment management firm Ceffu purchased 1.48 trillion PEPE tokens worth $11.6 million, bringing the total amount of tokens accumulated to nearly 2 trillion in just one day.
Read more: How to buy PEPE and everything you need to know
Moreover, Pepe’s adjusted Daily Active Addresses (DAA) metric seems to support the idea that a significant price increase is coming. DAA measures how often users interact with a cryptocurrency.
An increase in DAA is generally seen as a bullish signal, indicating growing user engagement, while a decrease indicates a decline in engagement, which can be bearish. When analyzed in conjunction with price action, DAA provides insight into whether it may be a good time to buy or sell.
When a cryptocurrency’s price is rising while user engagement is falling, it’s usually a sign that it might be time to sell. However, Pepe’s price has fallen 32.94% in the last 30 days. The recent rise in its DAA suggests that the meme coin may have bottomed out and it’s time to buy at discounted prices.
PEPE Price Forecast: Race Back to $0.000012 Begins
PEPE is currently trading at $0.0000078. However, according to the daily chart, the token could trade higher as the new month approaches. The image below shows a falling wedge forming.
A falling wedge is a bullish pattern that occurs when the price of a cryptocurrency loses its grip on an uptrend. At the same time, buyers take advantage of the downtrend while the price slowly starts to rise.
To confirm this forecast, PEPE bulls must defend the support at $0.0000071. Additionally, there is overhead resistance at $0.0000095 that the meme coin must break to continue its rally.
Read more: PEPE Price Forecast 2024/2025/2030
If successful, PEPE could see its price rise dramatically, potentially reaching $0.000012. However, the token’s failure to break resistance could negate this bullish thesis. If that happens, the meme coin could set a new low around $0.0000067.
