PEPE has extended its losing streak to six consecutive weeks. The Ethereum-based meme coin continues to slide despite signals of smart money accumulation. At the time of writing, PEPE trades at around $0.000003503, suggesting a 3.8% decrease in the last 24 hours. The meme coin is down 13.8% over the past week.
On-chain metrics reveal a divergence between price action and whale behavior. While retail sentiment is increasingly negative, large holders continue to buy. This disconnect may indicate a brewing reversal, though timing remains uncertain.
Smart Money Continues Accumulation Despite Price Weakness
Data from Santiment shows that the top 100 PEPE wallets have accumulated 23.02 trillion tokens over the past 4 months. The buying spree began after October’s market-wide sell-off. These wallets typically hold the power to reverse altcoin trends and spark significant rallies.
The accumulation pattern contrasts sharply with retail investor sentiment. Most small holders express bearish views on PEPE and the broader meme coin sector. Santiment analysts suggest that sustained Bitcoin momentum could trigger the next PEPE breakout. Heavy accumulation by sophisticated investors rarely occurs without strategic intent. The waiting game now centers on catalysts that could unlock this pent-up buying pressure.
James Wynn, a prominent Hyperliquid trader, made headlines last month with a bold prediction. He forecast PEPE’s market capitalization could reach $69 billion by 2026. The prediction preceded a sharp rally. However, Wynn exited all positions two weeks later, selling his entire holdings.
His exit raised eyebrows across the crypto community. Yet other whales stepped in to fill the void. The continued accumulation suggests belief in PEPE’s long-term potential persists among certain investor classes.
Liquidity Concerns Cast Shadow Over Recovery Prospects
Market analyst Benjamin Cowen issued a stark warning about the prospects of meme coins. In a tightening liquidity environment, meme coins face the most severe downside risk. Some tokens may disappear entirely as capital flows contract.
Current market conditions reflect this cautious stance. Investors show reluctance to allocate funds to meme coins. The risk-reward calculation has shifted unfavorably for speculative assets.
Meme coin dominance within the altcoin market remains subdued. This metric measures meme coin market capitalization as a percentage of total altcoin value. Low readings suggest the sector lacks momentum. A sustained rebound in dominance would provide stronger evidence of sector-wide recovery.
Analysts expect PEPE to find support and rebound in the near term. However, the path forward may include another local bottom before any meaningful rally takes hold. Price volatility remains elevated as the market searches for equilibrium.
Source: https://coinpaper.com/14508/pepe-price-prediction-whales-accumulate-23-trillion-tokens-despite-six-week-decline
