The meme-inspired cryptocurrency Pepe (PEPE) surged to a new all-time high on Monday, reaching $0.000027 despite a significant whale sell-off on December 8. The token has recorded a staggering 2000% gain since the start of the year, positioning itself as one of 2024’s top-performing assets.
Whale Activity and Market Resilience
Pepe’s meteoric rise extended its market cap to $11.37 billion and added 157% gains over the past month. However, data from IntoTheBlock highlighted a shift in large holder net flows, with net inflows of 1.03 billion PEPE (valued at $22.66 million) on December 6 turning into net outflows of 1.96 trillion PEPE (worth over $50.9 million) by December 8.
Despite the whale sell-off, PEPE demonstrated remarkable resilience, surging 27.3% over the past week as retail and institutional interest remained strong.
Factors Driving PEPE’s Rally
Several key factors have fueled PEPE’s sustained upward trajectory:
Mainstream Exposure: A surprise feature on Fox News, where PEPE was mentioned alongside Bitcoin as a promising investment, brought significant attention to the altcoin.
Major Exchange Listings: Recent listings on Coinbase and Robinhood have provided accessibility to retail investors, further driving demand.
Increased Retail Participation: Short-term PEPE holders surged by 263% in the last 30 days, reaching 80,450 unique addresses, according to ITB data.
Rising Open Interest: Data from Coinglass showed PEPE’s open interest reached a record $370.8 million, marking a 9% increase in 24 hours.
Cultural Momentum: The term “PEPE” has trended on Google, reflecting growing mainstream and online buzz.
Bullish Technical Patterns Point to Further Gains
Analysts predict continued growth for PEPE, citing bullish patterns on its daily chart.
Symmetrical Triangle Breakout: Pseudo-anonymous analyst Captain Faibik noted a breakout from a multi-month symmetrical triangle pattern, suggesting a potential price target of $0.000031—a 19% increase from current levels.
Cup and Handle Formation: Market commentator Chandler Bing identified a rare Cup and Handle pattern, a strong bullish indicator pointing to further price appreciation.
Technical Indicators: The MACD line has crossed above the signal line, signaling a bullish reversal, while the Average Directional Index (ADX) stands at 44, well above the threshold of 25, indicating a strong trend.
Potential Risks
While bullish sentiment dominates, analysts warn of potential sell-offs as 97.6% of PEPE holders are now in profit, which could lead to profit-taking in the short term.
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