Whale buying fails to prevent Pepe price drop amid low demand

Pepe (CRYPTO:PEPE) faces potential further price declines despite significant accumulation by crypto whales. 

This highlights a gap between large holders' actions and broader market sentiment. 

As the meme coin continues to feel downward pressure, an analysis of on-chain data reveals the challenges facing PEPE's current price levels and its short-term outlook.

Data from Glassnode shows that PEPE’s netflow among large holders surged by 108% in the past week. 

Netflow measures the difference between tokens accumulated by crypto whales and those distributed. 

A positive netflow typically suggests increased accumulation, but in PEPE's case, it has not translated into sustained buying momentum. 

While whales initially accumulated substantial amounts, the buying paused around September 13, stalling any potential for a rally.

Adding to the bearish sentiment, the number of active addresses interacting with PEPE has declined significantly since reaching a peak on September 14. 

Active addresses serve as an indicator of user engagement; an increase in active addresses generally signals strong demand, while a decrease suggests reduced interest. 

This drop in active addresses reinforces the weak market outlook for PEPE.

Currently priced at $0.0000071, PEPE has fallen by 31% over the past 90 days. 

The In/Out of Money Around Price (IOMAP) indicator highlights resistance near this level, where 8,600 addresses hold over 31 trillion tokens. 

This resistance could limit any upward movement. 

If these holders decide to sell, PEPE's price may face further correction, potentially dropping to $0.0000060.

However, if there is a sudden surge in demand and the current resistance is broken, PEPE's bearish outlook could be invalidated, possibly leading the price to rally toward $0.000010. 

For now, the crypto market remains cautious, with PEPE’s short-term future largely dependent on overcoming these critical resistance levels and regaining user interest.

At the time of reporting, the Pepe (PEPE) price was $0.057141.