Stacks (stx) 
Pepe Price Retreats Amid Market Volatility
On Saturday, May 24, the price of Pepe, the second-largest Ethereum-based meme coin, experienced a decline, reflecting broader market trends seen in Bitcoin and other altcoins. Pepe dropped to $0.000014, marking a 14% decrease from its weekly high.
Market Factors Influencing Pepe’s Decline
The retreat came as global market risks increased following geopolitical tensions. For instance, statements regarding potential higher tariffs on European goods and Apple products created uncertainty, leading to a decline in the overall cryptocurrency market capitalization. On Friday, the market cap of all cryptocurrencies fell from over $3.5 trillion to $3.4 trillion by Saturday.
On-Chain Data Highlights Whale Activity
One notable factor contributing to Pepe’s price movement is the behavior of large holders, commonly referred to as whales. On-chain data indicates a continued decline in the supply held by whales. Recent statistics show that whales currently hold approximately 141.2 trillion Pepe coins, valued at $1.4 billion. This marks a significant drop from the 165 trillion coins held in February, making their current holdings the lowest since November of last year.
Additionally, data suggests that smart money investors, characterized by their expertise and success in identifying trends, have been reducing their holdings of Pepe. According to available metrics, these investors now hold 244 billion Pepe coins, down from 380 billion a year ago.
Exchange Balances and Investor Sentiment
Another concern arises from the increasing balances of Pepe coins on exchanges. As of Saturday, there were 252.9 trillion Pepe coins on exchanges, up from this week’s low of 251.3 trillion. A rise in exchange balances often signals potential selling pressure, as more investors move their assets away from self-custody wallets.
Technical Analysis: Positive Indicators for Pepe
Despite the recent retreat, Pepe exhibits strong technical indicators that could suggest a reversal in the near term. The daily chart shows the potential formation of a golden cross pattern, which occurs when the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA. Historically, this pattern is associated with long-term bullish momentum.
Furthermore, Pepe has formed a rounded bottom pattern, a technical setup that often leads to price continuation. If Pepe manages to break above its weekly high of $0.00001625, it could pave the way for further gains. Analysts predict that such a breakout could drive the price toward a record high of $0.00002840.
Key Insights for Investors
For investors interested in Pepe, here are some tips to consider:
- Monitor whale activity and smart money trends, as these can offer valuable insights into market sentiment.
- Keep an eye on exchange balances, which can indicate potential selling pressure or accumulation.
- Analyze technical patterns, such as the golden cross and rounded bottom, to identify potential entry or exit points.
- Stay updated on broader market factors, including geopolitical developments, that may influence cryptocurrency prices.
As Pepe continues to navigate a volatile market environment, understanding both fundamental and technical factors can help investors make informed decisions.
