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PEPE could extend gains by another 20% as whales accumulate the meme coin

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on May 23, 2024
Updated: May 24, 2024
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  • PEPE, a frog-themed meme coin hit a new all-time high of $0.00001475 early on Thursday, May 23 in its rally.
  • The meme coin is likely to extend its gains by another 20% and climb to $0.00001769 this week.
  • Meme coin market capitalisation crossed nearly $62 billion, down 2% in the past 24 hours as seen on CoinGecko.

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PEPE, a frog-themed meme coin, hit its new all-time high on May 23, Thursday. The market capitalization of PEPE crossed $5.86 billion. PEPE is likely to extend its gains and rally nearly 20%, if the meme coin sustains its recent gains. 

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PEPE likely to extend gains in its uptrend 

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PEPE has been in an uptrend since April 19, as seen in the PEPE/USDT 1-day chart. The meme coin has consistently formed higher highs and higher lows, and hit a new all-time high of $0.00001475 on May 23. 

Despite the meme coin rallying to its peak, large wallet investors have continued accumulating PEPE tokens.

Data from crypto intelligence tracker Lookonchain shows that a whale withdrew over 390 billion PEPE tokens worth $5.54 million from Binance, on Thursday. 

The large wallet investor pulled the meme coin holdings off the exchange.

While an inflow of the asset to exchanges is expected to increase the selling pressure, whales pulling the token off exchange platforms is a positive sign for PEPE. 

PEPE could sustain its recent gains as whales pull their holdings off exchanges. 

If the meme coin closes above $0.00001243 on the daily chart, it could extend gains to $0.00001769, the 127.2% Fibonacci extension level of the rally from the April 13 low of $0.00000393 to the May 23 peak of $0.00001475. 

A rally to the $0.00001769 target marks nearly 20% gains in the meme coin.

The Moving Average Convergence Divergence (MACD) indicator and its green histogram bars above the neutral line, combined with the MACD line’s crossover above the signal line, supports a bullish thesis for PEPE. 

The Relative Strength Index reads 73.61, PEPE is in the overbought zone. While this would typically imply a correction is likely, the bullish sign from MACD and the underlying positive momentum in PEPE price’s uptrend could help the meme coin sustain its rally. 

PEPE/USDT 1-day chart 

On the downside, if PEPE fails to close above $0.00001243, the 78.6% Fibonacci retracement of the rally from April 13 to May 23, it could invalidate the bullish thesis. 

Traders need to exercise caution with RSI in the overbought zone. A correction in PEPE could imply a liquidity sweep at $0.00000934, the 50% Fibonacci retracement level of the rally from April 13 to May 23. 

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