• 26 May, 2024
News

Why Do Traders Accumulate PEPE When the Crypto Market Stumbles?

In recent trading hours, notable investors have strategically increased their holdings of the PEPE token, a cryptocurrency that has drawn attention for its meme-inspired branding. This trend occurs as the digital currency sees fluctuations in its valuation but remains a focal point for seasoned traders.

A detailed analysis of blockchain transactions by Lookonchain revealed several large-scale acquisitions by individual investors. One such investor, operating from wallet address 0xa145, withdrew 350 billion PEPE tokens valued at approximately $3.44 million from the cryptocurrency exchange Binance on May 10 at 4:09 PM +UTC. This investor is recognized for their proficiency in swing trading, boasting a profit of approximately $2.66 million from past PEPE transactions.

Source: Lookonchain

Similarly, another investor with the wallet address 0xa4Fd executed a sizeable purchase, acquiring 123.66 billion PEPE tokens at a rate of $0.00000881 per token, utilizing 1.09 million USDC. This transaction occurred on May 10 at 1:07 PM +UTC.

Additional notable activity included wallet address 0x895f, which withdrew 101 billion PEPE tokens—equivalent to $885,000—from Binance. Furthermore, the investor associated with wallet address 0x24E3 recently spent 661,000 USDC to buy 74.5 billion PEPE tokens at a price of $0.000008873 each.

During press time, the price of PEPE stood at $0.000008719, reflecting a 0.71% increase over the past 24 hours, albeit with a slight decrease of 1.19% over the previous week. Despite this minor weekly decline, PEPE has performed better than the broader cryptocurrency market, which has experienced a 4% drop. However, when compared to similar cryptocurrencies within the Ethereum ecosystem, which have seen an average increase of 12.7%, PEPE’s performance appears more subdued.

The market analysis shows a robust trading volume for PEPE, with a recorded 24-hour trading volume of $831,049,955.91. The Simple Moving Average (SMA) of trading volume stands at 36.448K, indicating active participation. Additionally, the Bollinger Bands (BB) on trading charts suggest volatility and price levels specific to PEPE, with values updated at the top of each chart.

Source: GeckoTerminal

The technical charts also feature two moving averages—an orange line representing a shorter-term view and a blue line indicating a longer-term perspective. The Relative Strength Index (RSI), sitting at 60.70, suggests that the PEPE market is neither overbought nor oversold, providing a balanced opportunity for potential investors.

PEPE’s market capitalization is currently estimated at $3,679,196,923, with a circulating supply of 420 trillion tokens. This valuation places PEPE among the more sizeable entities within the meme coin sector of the cryptocurrency market.

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