Pepe Coin Price Holds Strong Amid Market Volatility, Poised for a 260% Rally

Pepe Coin Price Holds Strong Amid Market Volatility, Poised for a 260% Rally

Pepe Coin has emerged as one of the top-performing assets despite the recent turbulence in the crypto market. While the erratic fluctuations in Bitcoin’s price have led many cryptocurrencies into bearish patterns, PEPE remains an outlier, maintaining its bullish momentum. A new bullish signal has just appeared on Pepe’s weekly chart, suggesting the potential for a 260% breakout rally. Notably, the last time this signal emerged, the meme coin experienced a staggering 1600% surge within just 98 days.

Pepe Coin’s Stochastic RSI Indicates Potential Bullish Reversal

The stochastic RSI on PEPE’s weekly chart has plunged to its lowest level since the coin began trading. This indicates that Pepe Coin is under extreme selling pressure, which could be setting the stage for a significant reversal.

The stochastic RSI oscillator shows a crossover in the oversold zone, typically signaling a possible bullish reversal in the near term. However, confirmation from price action breaking through key resistance levels is still needed to solidify this outlook.

Currently, the short-term trend remains downward, with the price moving within a falling wedge pattern. Should a breakout occur to the upside, this pattern usually signals a bullish reversal.

The last time the Stochastic RSI reached this oversold area on the weekly chart, Pepe Coin’s price skyrocketed over 1600% in under three months. If history were to repeat, PEPE could see a 260% increase from its current price, potentially reaching new all-time highs.

Price-DAA Divergence Suggests Accumulation Phase

According to Santiment analytics, there’s a positive divergence between Pepe Coin’s price and Daily Active Addresses (DAA), meaning the number of active addresses is on the rise. Despite this, PEPE’s price has been on a steady decline since August 24, likely due to short-term selling pressure, possibly from futures traders shorting the asset.

The divergence between the rising DAA and the falling price could indicate that more users are accumulating PEPE at lower prices, anticipating a future rebound. This trend is also reflected in the consistent spikes in whale transactions as the price declines.

Technical Analysis of PEPE Price Action

Pepe Coin has experienced considerable volatility in its long-term price action. The sharp spike to $0.00001605, followed by a gradual decline, suggests speculative trading with significant price swings.

PEPE may encounter resistance at the upper boundary of the falling wedge, around $0.00001000, which is the immediate resistance level. A breakout above this could signal a bullish reversal toward the previous high near $0.00001872.

On the downside, the lower boundary of the falling wedge, around $0.00000700, serves as the immediate support level. A break below this could push the price down to the psychological level of $0.00000500.

Overall, Pepe Coin stands out as a remarkable meme coin with limited fundamentals but impressive resilience. Meme coins like PEPE often see rapid and substantial gains compared to utility-driven cryptocurrencies. For example, Shiba Inu saw a meteoric rise of over 20,000,000% when it was purely a meme coin. However, since transitioning to utility with the launch of the Shibarium blockchain, its price action has become less explosive.

Given favorable market conditions, Pepe Coin could be one of the first to reach new all-time highs.