The supply of PEPE held by top addresses has been growing since mid-August. This could indicate that PEPE is still centralized and could drop to new lows if whales decide to dump the memecoin.
PEPE became the most searched token this week.
PEPE is oversold again, but can bulls turn to pivot from current levels?
Memecoin enthusiasts may want to look into PEPE in light of the market’s recent failed bullish attempts. Over the past few months, we have observed an increase in interest in memecoins whenever the market goes through a low volatility phase.
Why PEPE? Well, it somehow manages to be the top meme coin by social volume whenever the market is volatile. At press time, the market is experiencing a similar situation, with Bitcoin and altcoins having recovered to their bottom range.
Interestingly, KuCoin revealed that PEPE ranks highest in the ranking of popular coins based on weekly searches.
The above findings warrant an investigation into whether PEPE is indeed causing a stir. Here are some observations that may help explain this question.
The supply of PEPE held by top addresses has been growing since mid-August. At the same time, its weighted sentiment bottomed out on August 25 and successfully rebounded to a new high on August 30.
Do PEPE bulls have a chance to rebound?
Despite the above results, PEPE has maintained its bearish performance, recently falling to a four-month low. However, this bearish performance has caused the memecoin to become oversold.
This means that PEPE bulls have the potential to gain dominance. This is consistent with the fact that it is the most searched coin and the previously mentioned indicators.
So, should PEPE traders expect a rebound? The fact that top addresses are accumulating is a good sign for bulls. However, it does not confirm that the coin will rise.
Furthermore, we have previously highlighted the speculative nature behind memecoins and the lack of specific use cases to support them. However, one could argue that memecoins like Shiba Inu and Dogecoin share similar origins.
The next few days and weeks will be critical for PEPE as they will determine whether the memecoin can still meet healthy demand. This is especially important because, at press time, PEPE remains highly centralized.
Over 96% of the circulating supply is held by whales. Therefore, these whales have the power to disrupt the price action of memecoin if a dump occurs.
So far, the prevailing demand has not been enough to support a turnaround. However, it now has a chance to gain fresh bullish volume, but whether it can still pull in significant demand from the retail sector remains to be seen.
