PEPE Whales Hold Firm: Can They Stop a Major Price Drop?
Whale investors are stepping in to stabilize PEPE's price, preventing a deeper drop despite growing bearish sentiment and selling pressure from long-term holders.
Whale Activity Stabilizes PEPE Amid Bearish Sentiment
Large PEPE holders, often referred to as whales, are currently playing a critical role in stabilizing the price of the meme coin, despite mounting negative market sentiment. These investors have been adding significant amounts of PEPE to their wallets, totaling around $42 million worth of tokens. This surge in whale buying has helped maintain a key support level that could otherwise have led to a further price drop.
While PEPE's price has faced difficulties in recovering after a sharp decline in July, these large investors have been actively preventing further losses. Without their intervention, PEPE would likely be on a steeper decline, indicating how essential their influence is to the coin’s current price action.
Long-Term Holders Show Weakness, But Whales Step In
Market sentiment around PEPE has become increasingly negative, especially among long-term holders who typically provide a steadying force for the cryptocurrency. A key indicator, known as the “age consumed” metric, recently spiked, showing that these long-term holders are beginning to move large portions of their PEPE holdings. This suggests a growing lack of confidence in PEPE's future performance.
Despite this negative trend from long-term investors, whales have managed to keep the coin’s price stable. Earlier this week, these large wallet holders purchased 6 trillion PEPE, helping to offset selling pressure and maintain the token's value. This buying spree shows that whales are still betting on PEPE’s potential and are using this opportunity to accumulate at lower prices.
Can PEPE Hold Its Support?
Currently, PEPE is trading just above a critical support level that has proven strong in recent months. However, should the support weaken or if selling pressure increases, the token could face a substantial drop. Whales have so far been able to keep PEPE from falling below this line, but the risk of further losses remains if they pull back on their purchases or if market conditions worsen.
If PEPE breaks through its current support, it could experience a significant drop to the next support level, creating further downside risk. On the other hand, if whale activity continues, the token may stabilize and attempt to move toward higher resistance levels, offering some hope for price recovery in the near term.
In conclusion, PEPE whales are holding the line for now, keeping the meme coin’s price relatively stable. However, the future remains uncertain, with the potential for further volatility if large buyers ease up or if market conditions shift further against the coin.
