- Withdrawals from the stock exchanges exceeded deposits.
- The flow of money was low and could hinder a rapid pump.
On March 27, a whale brought Pepe over [PEPE], valued at $21.10 million from the KuCoin exchange. According to Whale Alert, this value was equivalent to 2.63 trillion tokens. Moments after the transactionthe price of PEPE fell.
At the time of writing, PEPE’s price stood at $0.000007, marking an increase of 1.12% in the last few hours. But before that, the token’s value fell to $0.000073, indicating that the memecoin felt the impact of the transfer.
However, the chain data analyzed by AMBCrypto showed that there was a significant disruption. To do this, we checked the inflow and outflow of currency.
According to the information we received, the inflow of foreign exchange amounted to 22.11 billion. For the uninitiated, this metric tracks the number of tokens sent to exchanges from external sources.
Source: Santiment
Price stable
On the other hand, exchange outflow measures the number flowing out of the exchanges. At the time of writing, the value was higher, at 88.30 billion. The difference between the metrics suggests that more participants withdrew PEPE to hold for the long term than those who cashed out.
If this remains the case as we head into the weekend, PEPE could stabilize. There is also a possibility that the value of the cryptocurrency could rise to $0.0000081 in the short term.
At press time, the Bollinger Bands (BB) showed that volatility around PEP is starting to increase. From a bullish perspective, high volatility and buying pressure could send the price towards $0.0000085.
However, if the bulls fail to provide the much-needed strength, PEPE could fall to $0.0000073. Indications from the Relative Strength Index (RSI) showed that the value was about to cross the neutral territory.
A further rise in the RSI could confirm the bullish bias and indicate that buying momentum has increased. However, the Money Flow Index (MFI) shows that not much capital has yet flowed into PEPE.
Source: TradingView
No more sales pressure
Position-wise, the bulls did not yet have the right liquidity to trigger a significant jump. Therefore, the token’s price may fluctuate sideways for a while before the predicted rally comes into play.
In terms of social dominance, AMBCrypto noted that the metric dropped. The drop in the metric suggests that discussions around PEPE have waned.
The decline in social dominance is a positive sign when placed at the price action as this could imply that the value was close to the bottom. Another indicator we analyzed was annual inflation.
On March 27, annual inflation skyrocketed, indicating that sellers were “dealing” with PEPE. However, the metric dropped at the time of writing, indicating that selling pressure on the token had subsided.
Source: Santiment
Read Pepe’s [PEPE] Price forecast 2024-2025
Further afield, PEPE could see a surge soon. However, market participants may need to be alert to changes in the market.
Should sentiment turn bearish, the potential upside could be offset.