simply put
PEPE had a relatively muted month in July after posting triple-digit gains in a remarkable recovery in June.
The recent 15% price reversal appears to have been driven by whale investors taking more bullish positions.
The number of new entrants joining the PEPE ecosystem has also decreased significantly, suggesting further price declines.
PEPE prices have been relatively flat so far in July. Where will PEPE prices go next amid growing investor pessimism?
PEPE prices are down 15% from July 3, dashing bullish investors’ hopes of continuing triple-digit gains in June. On-chain data suggests many investors may be looking to take profits. What’s next for PEPE prices?
PEPE is working hard to attract new users
The number of new users joining the PEPE ecosystem has dropped significantly over the past week. The Santiment chart below shows that 1,635 new wallet addresses were opened on July 3. As of the close of July 11, that number had dropped 47% to 863 new addresses.
Network growth tracks the number of new wallet addresses created on a blockchain network. This estimates how quickly the ecosystem is acquiring new users. When it falls, it indicates that the underlying token may have difficulty attracting demand in the near future.
The above chart shows that the 47% drop in network growth has had a negative impact on the price. Apparently, the PEPE price dropped by 15% between July 3rd and July 12th.
Whale investors weighing their next move
Additionally, whale investors appear to be taking a hawkish stance as they weigh their next move. The recent 15% drop in PEPE prices coincided with a drop in whale trading activity.
As shown in the figure below, the number of whale transactions began to decline around July 3. Between July 3 and July 12, the number of transactions dropped from 152 to 44, a decrease of 71%.
The Whale Transaction Count (>100k) metric aggregates daily transactions over $100,000. When it decreases over an extended period of time, it indicates that whales are reducing their stakes in the underlying token.
Without the liquidity and influential buying power of whale investors, prices are likely to continue to fall in the coming days.
PEPE Price Prediction: Bears May Target $0.0000010
If the bearish sentiment of the latest whales triggers a sell-off, the PEPE price could fall back below $0.0000010. However, according to breakeven price distribution data from IntoTheBlock, the $0.0000015 resistance level could provide support.
Currently, 27,000 investors have purchased a total of 127 trillion tokens at a minimum price of $0.0000010. If they desperately buy more tokens to avoid falling into a net loss, they may trigger a recovery.
But if they sell as expected, the price could drop below $0.0000010.
However, bulls could overturn this bearish narrative if the price reclaims $0.0000020. But as shown above, a few of the 33,000 addresses holding 69 trillion tokens at the $0.0000020 bottom price could spark a recovery.
But if the bulls push past this resistance, the price could move up to $0.0000025.
