Pepe Market Withstands 800B Token Selloff, Signaling Potential Bull Run in July

On June 25, an anonymous whale transferred 800 billion Pepe (PEPE) tokens worth $9.22 million to crypto exchange Binance, according to data resource Spot on Chain. Interestingly, the whale moved its PEPE holdings at a $3.47 million loss, indicating that the memecoin’s richest investors are selling their coins at a loss, which, in turn, shows their long-term bearish bias toward the coin.

However, instead of plummeting, the memecoin defied the odds and surged, rallying an impressive 20% to reach $0.000013500, its highest level in about two weeks.

Let’s discuss the market implications of this huge snub to PEPE bears in the coming weeks.

Real Pepe Bulls Are Absorbing Selloff Pressure

The fact that the price increased following a large sale at a loss is a clear indication of the potential for market recovery and resilience. It implies that other investors are willing to step in and buy the dip, which becomes further evident when one tracks the Pepe coin holdings among the whales, i.e., entities with more than 1 billion native tokens.

According to data resource Santiment, the Pepe supply held by the said cohort has hardly changed over the past week, especially after the 800 billion PEPE transfer to Binance. This further hints at the market’s ability to absorb sell-side pressure, which has led to the price increase in the PEPE market in the last 24 hours.

It is also possible that the whale who transferred 900 billion PEPE to Binance has not dumped the sum yet. Still, retail traders have largely ignored the potential impact of a $9.2 million sell order — again showcasing a medium- to long-term bullish bias toward the memecoin.

Why is PEPE Price Rising?

Fundamentally, PEPE’s price recovery is part of an overall rebound trend in the crypto market, led by subsiding fears about the potential impact of Mt. Gox’s retribution of $9.5 billion worth of Bitcoin to the users impacted by its crypto exchange hack in 2014.

Technically, the recovery is part of a consolidation/correction phase that often follows strong price rallies during a bull market. PEPE experienced a remarkable rise of over 1,200% in 2024, reaching an all-time high of $0.00001725 in March. Since then, the memecoin has entered a correction phase, dropping 30% from its peak by June 26.

Despite this decline, PEPE’s price has remained above a crucial support level of $0.00001000. The coin has rebounded from this level twice in June, indicating strong buying interest. This pattern suggests a potential double-bottom formation, a bullish reversal signal in technical analysis, indicating that the asset might be gearing up for an upward trend.

A double bottom forms when the price of an asset drops to a certain level twice, with a moderate rebound in between, creating a “W” shape on the chart. The key aspect is that the asset finds strong support at the same level both times, suggesting that buyers are stepping in to prevent further declines and potentially signaling a shift from a downtrend to an uptrend.

As a rule of technical analysis, a double bottom pattern resolves when the price breaks above its neckline resistance and rises by as much as the maximum distance between the pattern’s deepest point and the neckline. Applying the same principle on PEPE brings its double bottom upside target for July to around $0.00001800, up circa 40% from current price levels.

Conversely, a pullback from the neckline resistance at around $0.00001300 risks returning the PEPE price to $0.00001000.