Pepe (PEPE), the popular Ethereum-based niche coin, is currently going through its sixth consecutive week of decline in its market price quotation. However, PEPE whale accumulation has gained unexpected momentum, as large holders have taken advantage of price weakness to add trillions of units to their digital wallets lately.
According to data provided by the analytical platform Santiment, the hundred largest wallets in the ecosystem have shown resilient buying behavior during this period. This movement suggests that the so-called “smart money” is betting on a bullish reversal of the current trend, accumulating approximately 23.02 trillion tokens over the last four months of intense market volatility.
Smart money behavior versus retail market sentiment
Even though sentiment among retail investors is markedly bearish, large capitals seem to ignore the generalized panic of the meme coin sector. Santiment analysts maintain that PEPE whale accumulation usually precedes the most significant rallies in the market, acting as a necessary catalyst to break technical resistances that limit the growth of any high-cap cryptocurrency.
Although media trading figures have recently closed long positions, the entry of new institutional capital has compensated for these massive liquidity outflows. Therefore, the market observes how the long-term holder structure is strengthening, while short-term speculators abandon their positions due to the lack of an immediate recovery on the daily charts and indicators.
On the other hand, the dominance of meme coins within the global digital asset market remains at historically low levels currently. However, various experts consider that this scenario of low liquidity and depressed prices, represents a unique window of opportunity for those actors seeking to position themselves before Bitcoin resumes a sustained upward momentum that drags the rest of the assets.
Is PEPE’s recovery sustainable under current market conditions?
Likewise, market analysts like Benjamin Cowen have warned about the inherent risks of a tight liquidity environment for risk assets. In this context, coins that fail to consolidate a solid user base could face extreme difficulties to survive, which forces investors to be extremely selective with their capital allocations in high-volatility projects across the board.
However, the technical structure of PEPE indicates that, after reaching new local lows, an important liquidity zone could be forming for a rebound. Therefore, PEPE whale accumulation functions as a psychological and technical support, indicating that the price could be close to finding a definitive floor before attempting a new breakout toward its previous all-time highs.
In this way, the market cautiously awaits a clear signal that the dominance of this sector will begin to recover against the rest of the altcoins. As a result, institutional investors closely monitor whether the buying pressure from large holders, will be enough to counteract the macroeconomic weakness that has affected digital asset performance during the first quarter of the year.
Finally, the immediate future of this asset will depend on its ability to transform this silent accumulation into an upward and verifiable price movement. Thus, the community expects that the accumulation strategy of large investors, will finally manage to validate the growth projections that place the network’s most famous frog in a leading position within the sector.
