The meme coin PEPE, themed around frogs, has surged 11% in the past 24 hours, outpacing major meme assets.
Dogecoin (DOGE) and Shiba Inu (SHIB) recorded modest gains of 3% and 1% respectively, but PEPE has continued its upward trend with a double-digit rally.
PEPE Whales Drive Price Surge
The rise of PEPE occurred amid a trend of large-scale purchases by whales, which has fueled increased demand and bullish momentum for the meme coin.
In a post published on X on March 12, on-chain analyst Lookonchain mentioned that three large whale wallets have purchased 689.79 billion PEPE, worth around $5 million at the current market price. All the funds originated from Tornado Cash.
According to Lookonchain, the largest buyer, wallet 0x7A7D, acquired 437.7 billion PEPE using 1,413.4 ETH ($2.72 million), while 0x9212 and 0x7779 purchased 158.58 billion PEPE ($1 million) and 93.51 billion PEPE ($574,000), respectively.
This movement has sparked speculation about the source of the funds, but it has also triggered a resurgence of new demand for meme coins. As the price has risen, the daily trading volume has also increased, growing 18% in the past 24 hours to reach $1.05 billion at the time of reporting.
When an asset's price and trading volume surge simultaneously, it indicates strong market demand and increased buying activity. In the case of PEPE, this could be attributed to retail investors' FOMO (fear of missing out). This combination suggests bullish momentum in the meme coin market, and if the trend continues, it could lead to further gains.
Moreover, the rising open interest in PEPE futures underscores the influx of capital. At the time of writing, this metric stands at $120 million, up 21% in the past 24 hours.
When an asset's open interest rises, especially during a price increase, it signifies increased market participation and capital inflow. If macroeconomic factors remain favorable and market sentiment remains bullish, the prospects for PEPE's continued upward trajectory are promising.
The PEPE Bull Run Returns...Key Indicators Confirm Strength
PEPE's Elder-Ray Index has turned positive for the first time since January 19, confirming that investors' sentiment towards altcoins has shifted to a bullish stance.
This indicator analyzes the relationship between an asset's price and its moving averages, measuring the strength of bullishness and bearishness in the market.
When the index is positive, it indicates that bullishness is dominating the market, suggesting upward momentum and potential price appreciation. If this trend persists, PEPE's price could target $0.0000083.
Conversely, if buying activity weakens, PEPE could dip below the $0.0000062 support level and decline to $0.0000048.
