bulls

In recent weeks, the supply of PEPE held by top addresses has been steadily increasing, raising concerns about the coin's centralization. This has led to speculation that PEPE could experience fresh lows if large holders decide to dump their holdings. Despite these concerns, PEPE has emerged as the most searched coin this week, and its oversold status has piqued the interest of memecoin enthusiasts. In this blog post, we will delve into the factors affecting PEPE's price action and whether the bulls have a chance to stage a rally.

PEPE's Popularity

PEPE has consistently garnered attention during periods of low market volatility. It has maintained the highest social volume among memecoins when other cryptocurrencies, including Bitcoin and altcoins, were trading within their bottom ranges. Kucoin's recent ranking of PEPE as the top coin by weekly search further highlights its popularity.

Supply Accumulation and Sentiment Analysis

Since mid-August, the supply of PEPE held by top addresses has been on the rise. Notably, its weighted sentiment reached a low point on August 25 but rebounded to a new high by August 30.

Bearish Performance and Oversold Status

Despite these positive sentiment indicators, PEPE's price has remained bearish and recently hit a four-month low. However, this dip into oversold territory suggests that there may be an opportunity for the bulls to regain control. The high search volume and supply accumulation are supportive factors for a potential rally.

Uncertain Future

While the accumulation by top addresses is a positive sign for the bulls, it does not guarantee a rally. It's important to note that PEPE is a speculative memecoin without a unique use case, similar to the early days of Shiba Inu and Dogecoin.

Centralization and Whale Dominance

PEPE's current situation is characterized by high centralization, with over 96% of its circulating supply controlled by whales. This concentration of ownership means that these large holders have the potential to significantly impact the coin's price by selling their holdings. Despite this risk, demand has not yet been sufficient to support a major price pivot.

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