PEPE investors rode a wave of green last week as the memecoin surged over 21%. This latest price rally has pushed PEPE closer to a critical resistance level, sparking speculation about a potential 200% price surge.
Renowned crypto analyst World Of Charts recently highlighted a bullish pennant pattern forming on PEPE’s chart. This technical indicator suggests that the coin is gearing up for a significant upward move. Since March, PEPE has been consolidating within this pattern, and a breakout could ignite a 200% price rally.
$Pepe #Pepe Consolidating Within Tight Range From Last Few Months After Breakout Pepe Can Start Massive Recovery Bullish Pennant Breakout Is Can Be Perfect Entry Expecting 200% After Successful Breakout pic.twitter.com/JrPcQt9V8f
— World Of Charts (@WorldOfCharts1) November 7, 2024
On-Chain Data Points to Bullish Sentiment
To gauge the likelihood of a breakout, we delved into PEPE’s on-chain metrics. Santiment data reveals a surge in buying pressure, evidenced by increased supply outside exchanges and decreased supply on exchanges. Additionally, whale activity has been bullish, with large wallets accumulating PEPE tokens.
However, a slight decline in supply held by top addresses suggests potential profit-taking by whales. Nonetheless, overall sell pressure remains low, as indicated by decreasing sell volume.
Technical Analysis: A Cautionary Note
While the bullish outlook is promising, technical indicators suggest a potential price correction. PEPE’s recent sharp rise has pushed its price to the upper limit of the Bollinger Bands, often signaling an impending correction. If this occurs, the coin could retreat to its 20-day Simple Moving Average (SMA) for support.
The Road Ahead for PEPE
PEPE’s recent price surge and bullish technical indicators have ignited excitement among investors. However, it’s crucial to approach this potential breakout with caution. While a 200% price surge is possible, it’s equally important to consider potential price corrections.
Investors should conduct thorough research and consider their risk tolerance before making investment decisions. Stay tuned for further developments in the world of memecoins, as PEPE continues to captivate the crypto community.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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