Pepe Price Primed for Potential Breakout Amid Short-Term Bullish Momentum
The Pepe coin (PEPE) is on the verge of a potential breakout as it continues to ride a short-term bullish trend. Over recent weeks, PEPE price has surged, closely tracking the increased inflows into Ethereum ETFs, underscoring its correlation with the second-largest cryptocurrency. Notably, large-scale accumulation by PEPE whales signals expectations of further price increases. As Ethereum garners more attention in traditional finance, meme coins like Pepe might outperform other cryptocurrencies.
Pepe Price Analysis Indicates Market Indecision
PEPE price has seen a 2.9% increase in the past 24 hours, trading at $0.00000821. However, the asset remains in a broader downward trend, as it continues to trade below both the 50-day and 200-day exponential moving averages (EMAs).
Recent price movements show consolidation within a symmetrical triangle pattern, suggesting a period of indecision that could precede a breakout. The direction of this breakout will be crucial in determining the next significant move for PEPE.
Key resistance levels for PEPE are at $0.00000890 and $0.00000969. Should the price break above the latter, PEPE could see a 24% gain, potentially reaching $0.00001200. On the other hand, if bearish sentiment prevails, the price may find support around $0.00000800 and $0.00000700.
According to data from CoinGecko, trading volume remained relatively low during this consolidation phase, which is typical for a pattern nearing a breakout. A spike in volume will be necessary to confirm the breakout direction.
The Relative Strength Index (RSI) currently stands at 48, indicating a lack of strong momentum in either direction, but also leaving room for a potential move up or down.
At this critical juncture, PEPE’s market structure reflects indecision. However, the accumulation by large holders (whales) may provide insight into the likely direction of the coin.
Why Are Whales Accumulating PEPE?
Pepe whales appear to be positioning themselves for positive price action, as they have increased their holdings over the past 24 hours. Data from IntoTheBlock shows that the net flow of large PEPE holders turned positive between August 12 and 13, with over $1 million added to their holdings.
Further supporting this bullish sentiment, Coinalyze reports a 5.43% increase in Pepe’s open interest (OI), signaling growing optimism among traders.
Pepe also maintains a strong correlation with Ethereum, ERC-20 tokens, and EVM-based Layer 2 network solutions. With Yahoo Finance recognizing Grayscale’s ETF as a legitimate investment opportunity, Ethereum could attract more traditional investors, potentially bringing new capital into the market. Given this high correlation, a positive movement in Ethereum’s price is likely to benefit PEPE as well.
In the coming days, PEPE could break out of its current bullish setup, potentially shifting market sentiment further in its favor. If this breakout occurs, it could save over $328 million worth of PEPE that is currently teetering between loss and profit.
To reach this goal, PEPE will need a significant increase in trading volume to overcome the overhead resistance at the 200-day EMA. If successful, more than 40.13 trillion PEPE could move into profitability.
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