The PEPE price stabilized around $0.000079 on August 14, reflecting a 31% decline in the first half of August 2024. Despite favorable developments such as Grayscale launching new crypto trusts and the release of soft CPI data, on-chain data shows a significant drop in whale demand for PEPE.
PEPE Price Falls 31% in August 2024
August got off to a rocky start for PEPE, hitting a three-month low on August 5. While the overall crypto market recovered in the second week of August, thanks to Brazil’s Solana ETF approval and Grayscale’s introduction of new crypto asset offerings for its U.S. clients, PEPE’s rally was short-lived.
PEPE experienced a short-term rally between August 5 and 9, but recent events suggest that this rally was merely a spurious one.
As shown in the chart above, PEPE has posted losses on each of the last three trading days. Zooming out, the monthly time frame shows a 30% loss as of August 15.
The release of the US CPI data failed to lift crypto markets as investors initially focused on the stock markets. Accordingly, crypto markets, including PEPE, stumbled after the release of the CPI data on Wednesday, raising fears of a sharp correction. The price of PEPE has been fluctuating in this context, and with whale investors cutting back on their demand, the cryptocurrency seems poised for further declines.
Whale investors go missing
This downward trend is further exacerbated by the significant decline in demand for PEPE from whales. The number of large transactions, as shown 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 large investors.
The decline in whale activity has seriously affected the PEPE price and limited its ability to recover in recent days. If this trend continues, PEPE may face further downward pressure in the coming days.
PEPE Price Forecast: Cracks Appear Around $0.00008 Support
Current PEPE price action shows significant cracks around the $0.00008 support level. Recent bearish momentum coupled with a decline in whale activity suggests that this support level is under threat.
As shown by the Bollinger Bands, the price of PEPE is moving towards the lower band, indicating increasing selling pressure. The Parabolic SAR dots have also turned above the price, confirming 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 downside, resistance is expected around $0.00009, but with the current market sentiment, a significant rally seems unlikely. Traders should be cautious, as bearish indicators suggest that PEPE price could continue its downward trend in the near term.
