The diminishing demand for Bitcoin (BTC) and Ethereum (ETH), as depicted by the notable cash outflows from the respective US-based spot ETFs, has compelled crypto investors to shift focus to the small-cap altcoins, particularly meme coins for higher results.
The total market cap for the top meme coins gained over 2 percent to about $42.3 billion and a daily average traded volume of around $7.3 billion, despite the Bitcoin price drop below $60k.
Pepe Whales Aggressively Accumulate More Tokens
As the larger crypto industry continues to consolidate due to a lack of major announcements in the short term, on-chain data shows some whale investors have accelerated accumulation rates. Moreover, the correlation between Bitcoin and the altcoin industry is positive, indicating strong confidence from investors in an inevitable parabolically rally ahead.
According to on-chain data analysis conducted by Lookonchain, an address associated with Ceffu, an enterprise-grade custody and liquidity provider for institutional investors, received 1.48 trillion Pepe units, worth over $11.6 million, from the Binance exchange earlier today.
Another whale was spotted purchasing 173 billion PEPE, worth approximately $1.34 million. According to on-chain data, the crypto trader still has nearly $500k in Circle’s USDC, which could be deployed in the Pepe market.
Midterm Price Action
From a technical standpoint, Pepe price has shown a high correlation with Bitcoin in the recent past, despite the notable rise of meme coins on other chains led by Tron (TRX), and BSC. The frog-themed meme coin has been trapped in a correction mode in the past three months and could continue in the coming weeks.
Furthermore, historical crypto data shows most of the September in the last 10 years have turned bearish.
With Pepe’s weekly Relative Strength Index (RSI) hovering below 50 percent, the mid-cap meme coin, which has a reported market cap of around $3.3 billion and over 297k holders, could drop around 25 percent before rebounding in the anticipated altseason.
