PEPE Whales Propel 11% Rally, Fueling Market Optimism

The frog-themed meme coin PEPE has surged 11% in the past 24 hours, significantly outpacing leading meme assets. 

While Dogecoin (DOGE) and Shiba Inu (SHIB) have managed modest gains of 3% and 1%, respectively, PEPE has soared by double digits and is looking to extend its rally.

Whales Fuel PEPE’s Surge

PEPE’s rally comes amid a trend of significant whale acquisitions, which have fueled increased demand and bullish momentum for the meme coin. 

In a March 12 post on X, on-chain sleuth Lookonchain noted that three whale wallets recently acquired 689.79 billion PEPE, valued at $5 million at current market prices, with all funds originating from Tornado Cash.

According to Lookonchain, the largest buyer, wallet 0x7A7D, spent 1,413.4 ETH ($2.72 million) for 437.7 billion PEPE, while 0x9212 and 0x7779 purchased 158.58 billion PEPE ($1 million) and 93.51 billion PEPE ($574,000), respectively. 

Although the move has sparked speculation about the source of these funds, it has also triggered a resurgence in new demand for the meme coin. As its price grows, its daily trading volume also rallies. Over the past 24 hours, volume has surged by 18%, totaling $1.05 billion at press time. 

When an asset’s price and trading volume surge simultaneously, it indicates strong market demand and increased buying activity, possibly driven by retail FOMO (fear of missing out) in PEPE’s case. This combination suggests bullish momentum in the meme coin’s market, signaling more gains if the trend continues.

Moreover, in the futures market, PEPE’s rising open interest highlights the capital inflow into it. As of this writing, the metric is at $120 million, rocketing 21% in the past 24 hours. 

When an asset’s open interest climbs, especially during a price rally, it indicates increased market participation and capital inflow. If macro factors remain favorable and market sentiment remains bullish, there is a strong likelihood of a sustained PEPE rally.

PEPE Bulls Are Back: Key Indicator Confirms Strength

PEPE’s Elder-Ray Index has returned a positive value for the first time since January 19. This confirms the bullish shift in investors’ sentiment toward the altcoin.

The indicator measures the strength of bulls and bears in the market by analyzing the relationship between an asset’s price and a moving average. 

When the Index is positive, it indicates that bulls are in control, suggesting upward momentum and potential price gains. If sustained, this trend could drive PEPE’s price toward $0.0000083. 

Conversely, if buying activity weakens, PEPE could break below the support at $0.0000062 and fall to $0.0000048.