Despite enduring a prolonged downtrend on both monthly and daily charts, Pepe [PEPE] has managed a modest gain of 0.94% over the past week. Market trends now suggest that the memecoin might be gearing up for a significant rally, aiming to revisit its May peak of $0.00001725—and potentially climb even higher.
Whale Actions Fuel Optimism for PEPE
A recent Lookonchain report has added fuel to the fire of PEPE’s potential resurgence. The report reveals a notable transaction in which a whale, defined as an investor holding a substantial amount of tokens, transferred 4 billion PEPE—valued at approximately $29.87 million—from the centralized exchange Bybit to a private wallet. This large-scale movement often signals growing investor confidence, typically indicating that a supply squeeze could be on the horizon.
A supply squeeze occurs when the available supply of a cryptocurrency becomes constrained, often leading to increased prices as demand continues unabated. Although the immediate impact on PEPE’s price has been muted, with a daily decline of 3.93%, the broader market sentiment remains optimistic.
Technical Indicators Point to Potential Breakout
PEPE’s technical setup presents a compelling case for a potential rally. Currently, the memecoin is trading within a bullish symmetrical triangle—a pattern defined by converging diagonal support and resistance lines that create a sloping structure. In this formation, prices generally oscillate within these levels until a breakout occurs near the point of convergence.
PEPE is now at a critical juncture, having rebounded from the lower support line—an essential catalyst for movement. This rebound aligns closely with the pattern’s convergence point, setting the stage for a possible breakout. Should PEPE break out of this pattern, it could revisit its May peak of $0.00001725, with potential for even higher gains.
Adding to the bullish sentiment, the Moving Average Convergence Divergence (MACD) indicator is showing signs of a possible rally. The MACD line (blue) recently crossed over the Signal line (yellow), a bullish crossover accompanied by increasing volume. This scenario often precedes upward price movements, suggesting that PEPE might be on the cusp of a rally.
Also Read: Dogecoin Down 20%, Shiba Inu Falls 31%, Pepe Surges 50% Amid Crypto Market Volatility
Rising Open Interest Signals Growing Momentum
Another positive signal for PEPE comes from the open interest figures. According to Coinglass, the open interest in PEPE has seen a significant rise, now standing at $91.16 million. This increase reflects heightened retail trader activity and signifies that new positions are being opened. Such growth in open interest often indicates a strengthening trend and could point to a bullish outlook for PEPE.
While PEPE has faced a prolonged downtrend, recent whale movements, technical patterns, and rising open interest are creating a more optimistic outlook for the memecoin. As key factors align, PEPE could be gearing up for a rally, potentially reaching new highs and revisiting its past peak. Investors and traders should keep a close watch on these developments as PEPE’s next moves unfold.
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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