PEPE continues its rally despite whale selloff

Pepe, a meme-inspired token based on the popular “Pepe the Frog” character, has continued its impressive rally, even in the face of a significant whale sell-off on December 8. Despite the large movement of PEPE tokens from major holders, the price surged to a new all-time high of $0.000027, marking an incredible 2000% increase since the start of 2023. This rally pushed the market cap of PEPE to over $11.37 billion, with its recent price performance continuing to extend its monthly gains to 157%.

Interestingly, the recent surge in Pepe’s price came despite the sell-off, which was a notable shift in market dynamics. According to data from IntoTheBlock, the net flows from large holders saw a drastic reversal, from a net inflow of 1.03 billion PEPE (worth about $22.66 million) on December 6, to a net outflow of 1.96 trillion PEPE, valued at over $50.9 million by December 8. Whale sell-offs typically signal moments of panic or profit-taking, which often lead to price declines. However, Pepe has shown resilience, with the price continuing its upward trajectory despite these large sell-offs.

The surge in PEPE’s price can be attributed to several factors. One of the key drivers was a surprise feature on the prominent American news channel Fox News, where the meme coin was highlighted as a potential good investment alongside Bitcoin. This media exposure helped spark increased interest from retail investors, further fueling the rally. Additionally, the listing of PEPE on major exchanges like Coinbase and Robinhood has made the token more accessible to a wider audience, allowing retail investors to capitalize on the coin’s gains.

Further fueling the price rise, the number of short-term holders of PEPE has seen a substantial increase, with the number of unique addresses holding the token rising by 263% over the last 30 days, reaching 80,450 addresses. This surge in short-term holders indicates a growing level of interest in the coin, which in turn has pushed the price higher. In addition, data from Coinglass shows that PEPE’s open interest has reached an all-time high of $370.8 million, reflecting a 9% increase in the past 24 hours, and the term “PEPE” has been trending on Google.

Looking ahead, analysts remain optimistic about PEPE’s future price action. Analyst Captain Faibik notes that PEPE has broken out of a multi-month symmetrical triangle pattern, which suggests the price could climb further to $0.000031 in the short term, marking a 19% increase from the current price level. Another analyst, Chandler Bing, pointed to a Cup and Handle pattern, a rare bullish signal in technical analysis, indicating that the ongoing rally may continue. Additionally, the bullish reversal is further supported by technical indicators, such as the MACD line crossing above the signal line, and the Average Directional Index (ADX) being at 44, well above the 25 threshold, suggesting a strong bullish trend.

Despite these bullish predictions, there are potential risks as well. Given that 97.6% of PEPE holders are currently in profit, there is the possibility of a sell-off as some holders may look to take profits after the significant gains. However, for now, PEPE seems to be maintaining its momentum, with analysts predicting that its price may continue to rise in the coming days.