PEPE price has seen a modest 11% rise over four days, which is minimal compared to its past performance. The slow growth is attributed to declining participation from whale investors, making PEPE a less attractive investment.
The expected breakout from the descending wedge is hindered by the lack of incentives for new investors and the reduced activity of large wallet holders, or whales.
The Sharpe Ratio for PEPE stands at 0.3, indicating that the risk-adjusted returns are not strong enough to attract investors. This suggests that the compensation for the risks involved is inadequate.
In addition to the low Sharpe Ratio, whale participation has significantly declined. Whales play a crucial role in determining PEPE's price and market activity. Their reduced involvement signals a shift in market sentiment or loss of confidence in the coin.
This decline is also reflected in the average daily trading volume, which dropped by 60% in one week, from $83 million to $33 million. Such a sharp reduction could lead to increased price volatility and challenges in sustaining any potential rallies.
Despite these concerns, PEPE’s price prediction suggests a potential 80% price rise if it can breach the resistance at $0.00000775 and target $0.00001007. However, skepticism remains due to the lack of supportive cues for a bullish outcome.
