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The recent buying spree of 689 billion PEPE tokens has sparked curiosity among investors and traders. Three wallets, all linked to Tornado Cash, accumulated these massive amounts of tokens in a short period, indicating potential risk-on positioning.
According to blockchain data, wallet 0x7A7D executed the largest transaction, spending 1,413.4 ETH ($2.72 million) to acquire 437.7 billion PEPE. Similarly, wallet 0x9212 bought 158.58 billion PEPE for $1 million, while wallet 0x7779 spent 299 ETH ($574,000) to purchase 93.51 billion PEPE. The substantial investment from these wallets raises questions about whether this is an accumulation phase before a price surge or an attempt to manipulate the market.
PEPE has been under significant selling pressure, with a sustained downtrend pushing the price to multi-month lows. The technical indicators on the chart paint a bleak picture, with PEPE struggling to find strong support. Short-term moving averages are sloping downward, confirming bearish momentum. However, this sudden buying spree introduces a new element of uncertainty.
Arman ShirinyanThe fact that all three wallets sourced funds from Tornado Cash adds a layer of speculation. Tornado Cash is often used for privacy-focused transactions, making it difficult to trace the origin of the funds. This raises the possibility that the buyers might have prior knowledge of upcoming market movements or are planning a coordinated price action.
Alex DovbnyaIf PEPE can capitalize on this sudden demand and break above key resistance levels, a short-term relief rally might be in play. However, without strong follow-up buying from retail and institutional investors, the price could continue its downtrend.
While the recent purchases suggest renewed interest in PEPE, the overall market structure remains bearish. Investors should monitor whether these large purchases lead to an actual price recovery or if it is just a temporary uptick in activity. If momentum picks up, a breakout above $0.00000078 could be the first step toward a larger reversal. However, failure to sustain this buying pressure could mean PEPE remains stuck in a prolonged downtrend.
Dan Burgin
Vladislav Sopov