- A whale converted one million USDC into 807 billion PEPE as the token price increased.
- Buying pressure neutralized selling pressure but the OBV needs to be positive for a possible rise to $0.0000014.
- Open contracts displayed traders’ sentiment as bullish in the short term.
Bitcoin’s (BTC) brief surge above $30,000 positively impacted the price of many cryptocurrencies in the market including Pepe (PEPE). The spike, which ensured that the crypto market cap increased by 1.98%, also led PEPE to an 11.38% hike in the last 24 hours.
But that was not all. Just before PEPE rose as high as $0.000001246, on-chain analyst Lookonchain reported a major accumulation by a whale. According to Lookonchain, the whale in question, exchange one million Circle (USDC) for 807 billion PEPE.
A whale spent 1M $USDC to buy 807B $PEPE at $0.000001239 7 hrs ago after the price of $PEPE increased.https://t.co/P03KsDrzFi pic.twitter.com/0hjW6ewDjp— Lookonchain (@lookonchain) August 9, 2023
PEPE Tries Another Upward Move
Typically, if a whale decides to buy a huge amount of cryptocurrency, the price of the asset is likely to increase. Also, that single action could propel other market participants to follow the same route.
Interestingly, PEPE’s 4-hour chart against the USD seemed to align with that school of thought. At press time, several bullish candles appeared since PEPE gained support at $0.0000011. Despite a minor retracement of around $0.00000122, buyers were still able to push the price upwards.
Previously, PEPE was stuck in a bearish market structure up until August 5. But the Relative Strength Index’s (RSI) rise to 63.62 reinforced the idea of a strong bullish momentum. Between August 1 and 7, the RSI was unable to push close to the 50 mid-point, indicating how sellers have been in control of PEPE’s momentum.
But the indicator’s recent upward movement has neutralized the selling control and has placed PEPE in pole position for a possible 20% hike.
However, for the meme to increase much more than it has done, it would need the support of the On-Balance-Volume (OBV). At the time of writing, the OBV was -744.69 billion. Although the OBV increased, reaming in the negative region means that distribution may be taking place.
PEPE/USD 4-Hour Chart (Source: TradingView)
Is $0.0000014 the Target?
If the OBV continues to reign in the red region, the PEPE’s upward trend might stall, creating a negative divergence. But if the OBV finally moves into positive territory, it would serve as a confirmation that increased accumulation is taking place.
Despite the indication by the OBV, traders were bullish on PEPE due to the funding rate. As of this writing, the funding rate was 0.0052%. When the funding rate is positive, it means that the broader sentiment is bullish.
PEPE’s Funding Rate (Source: Coinglass)
But when it’s negative, it means that traders are bearish on the price action. From the funding rate, the average trader’s target was $0.0000014. But to reach the price, PEPE would require more buying pressure.
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