The price of the popular meme currency (PEPE) may fail to achieve any potential highs, as an atmosphere of pessimism prevails among investors in the digital currency.
The biggest factors that may lead to this failure are ‘whales’ or large portfolio holders, who are significantly divesting their investments.
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Baby under pressure
The PEPE price of $0.00000785 was expected to see a breakout from the bearish pattern of the falling wedge, but this may not happen since investors are not optimistic.
Interaction across the currency’s network has taken a big hit as investors continue to back out of executing transactions. Currently, active headlines have fallen to a six-month low, due to the lack of a price recovery, giving investors little incentive to move their holdings.
Moreover, the behavior of holders of large portfolios, or what is known as ‘whales’, negatively affects investor confidence in general. Their decision to steer clear of participating in the network is causing concern among market participants.
This decline is particularly evident in the volume of high-value transactions associated with the digital meme currency ‘Bibi’, especially those worth more than $100,000. When these large holders reduce their activity, it indicates a lack of interest or confidence in the current market conditions.
In just two weeks, the average daily transaction volume related to Bibi saw a 60% decline, falling from $83 million to $33 million. This sharp decline highlights the significant impact of ‘whale’ activity on the overall market. If this continues, the price will have little chance of growth.
Price forecasts
Currently, the PEPE is trading above the support level at $0.00000775, and is looking to bounce back from this level to record a rebound. A falling wedge indicates a possible rise of 80% towards a historic high of $0.00001725.
However, given the above factors, the price is unlikely to exit this pattern. Therefore, the cryptocurrency may have difficulty exceeding $0.00001000 until stronger bullish signals appear that push the coin upwards.
On the other hand, if investor behavior changes, the PEPE price may be able to convert $0.00001000 into a support level. This could pave the way for strong highs, eliminating bearish expectations.
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