Whales buy into PEPE – Do they know something you don’t?

• Holders, on average, had an unrealized profit of 4.5% on their initial investments.
• PEPE looked bearish upon examination of its key technical indicators.

Frog-themed token Pepe [PEPE] was one of the best-performing meme coins in the last 24 hours, recording gains of 4.34%, according to CoinMarketCap.

The coin’s 24-hour trading volume also topped $700 million, trailing only the blue chip duo of Dogecoin [DOGE] and Shiba Inu [SHIB].

Most PEPE holders still in profits

The coin endured significant downside volatility of late owing to the broader market correction, falling 24% over the past week.

But despite the pullback, the majority of PEPE holders were still in profits, according to on-chain analytics firm IntoTheBlock.

Nearly 70% of holders had their holdings trading above the average price at which they were acquired.

Moreover, holders, on average, had an unrealized profit of 4.5% on their initial investments, as per AMBCrypto’s examination of Santiment data.

The high profitability had the potential to entice more users towards PEPE’s fray, as many, especially retail investors, have the tendency of getting swayed by these metrics.

Be cautious of PEPE’s next moves

Meanwhile, PEPE looked bearish as per AMBCrypto’s examination of its key technical indicators.

The Relative Strength Index (RSI) was hovering in the 30-40 zone, suggesting strong selling pressure.

A move above 40 could raise expectations of a bullish rebound, as the 40-50 zone typically acts as a good support during a bull market.

The On Balance Volume (OBV) mimicked the price trajectory, indicating that the ongoing trend i.e the downtrend, was likely to persist.

Whales remain unperturbed

While PEPE has fallen substantially in recent weeks, whale investors have continued to accumulate the meme coin at cheaper rates.

Read PEPE’s Price Prediction 2024-25

Wallets holding between 1,000 and 1 million coins increased significantly in number, AMBCrypto spotted using Santiment data.

Additionally, positive commentary around the coin outweighed the negative ones, resulting in a positive Weighted Sentiment.