The Pepe price has moved sideways this month and is showing signs of bottoming as supply on exchanges rises and whale accumulation intensifies.
Pepe coin (PEPE) token was trading at $0.0000075 on Sunday, a few points above the year-to-date low of $0.000005860.
On-chain metrics show that the value of Pepe could surge in the next few weeks. Data show that the 365-day Mean Dollar Invested Age or MDIA has gone vertical to 128, from the November low of 35.
The MDIA is a popular indicator that looks at the average purchase price of tokens held in current addresses. A surging MDIA figure indicates that holders are not selling their tokens, suggesting they are confident in the coin.
Another metric shows that the supply of Pepe tokens in exchanges has continued falling this year. The supply on exchanges as a percentage of the total supply has dropped to 26.6%, down from 45% in November last year.
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A falling supply on exchanges is a good catalyst for a coin because it is a sign that investors are moving their tokens to self-custody. A rising figure indicates that these investors are transferring their coins to exchanges in preparation for selling them.
The falling figure is notable since, in many instances, the supply on exchanges fall as a token is in a strong downward trend.
Pepe on-chain metrics | Source: Santiment
Further data shows that whales are continuing to accumulate the Pepe coin. The supply held by top addresses has begun to recover. These whales have accumulated 172 trillion coins, up from 131 trillion tokens.
Pepe price technical analysis
Pepe price chart | Source: crypto.news
The daily chart shows that the Pepe price bottomed at $0.000005860, where it failed to move below several times since August last year. It has formed a small double-bottom pattern at the same level.
Pepe has also formed a falling wedge pattern, which is characterized by two descending and converging trendlines. Oscillators like the MACD and the Awesome Oscillator have formed a bullish divergence pattern.
Therefore, the token will likely bounce back, as bulls target the psychological point at $0.000010, up by 35% above the current level.
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