The price of Pepe (PEPE), a popular meme coin, is exhibiting signs of a potential breakout after riding a recent bullish trend. This surge coincides with increased inflows into Ethereum ETFs, highlighting a correlation between PEPE and the world’s second-largest cryptocurrency. Additionally, active accumulation by large investors, often referred to as “whales,” suggests anticipation of further price increases for PEPE.
Pepe Price Analysis Consolidation Hints at Breakout
While PEPE has gained 2.9% in the last 24 hours, trading at around $0.00000821, it remains below both the 50-day and 200-day exponential moving averages (EMAs), indicating a broader downward trend. However, recent price action reveals a consolidation pattern within a symmetrical triangle, which often precedes a breakout in either direction.
Key Levels to Watch for PEPE
Resistance for PEPE lies around $0.00000890 and $0.00000969. A decisive break above the latter level could propel the price by 24%, reaching $0.00001200. Conversely, a bearish scenario might see PEPE find support at $0.00000800 and $0.00000700.
Whale Accumulation Signals Bullish Sentiment
Data from IntoTheBlock reveals a positive development for PEPE. Large investors have been accumulating the token over the past 24 hours, with a net inflow exceeding $1 million. This significant buying activity by whales suggests their belief in a future price increase.
Ethereum’s Influence on PEPE
Pepe’s strong correlation with Ethereum, ERC-20 tokens, and EVM-based Layer 2 solutions cannot be ignored. With Yahoo Finance recognizing Grayscale’s Ethereum ETF as a legitimate investment option, Ethereum is poised to attract more traditional investors, potentially leading to an influx of new capital. Given the established correlation, a positive move for Ethereum could translate to gains for coin as well.
Also Read: Bitcoin Price Volatile – Up 15% On PPI, Down As Bears Reassert Control – Dogecoin, Pepe Hold Strong
The coming days could see coin break out of its current bullish setup, further bolstering positive market sentiment. This breakout could potentially save over $328 million worth of PEPE currently held by investors teetering between profit and loss. However, achieving this feat requires increased trading volume to overcome the resistance level at the 200-day EMA. A successful breakout could see over 40.13 trillion coin tokens transition into profitable positions.
Pepe coin finds itself at a critical juncture. While the technical indicators suggest indecision, whale accumulation hints at a potential bullish breakout. With Ethereum gaining traction in traditional finance, meme coins like coin could be poised for significant outperformance compared to other cryptocurrencies. Investors are advised to closely monitor PEPE’s price action, trading volume, and key resistance levels in the coming days for a clearer picture of its future trajectory.
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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