PEPE Hints at a 30% Rally as It Breaks Above a Bullish Pattern

Last week, PEPE's price took a hit, dropping over 2%. But in the last 24 hours, the meme coin showed signs of recovery, with its value surging by over 3%.

After a rough week where PEPE’s price dropped by over 2%, the meme coin showed signs of recovery in the last 24 hours. Its value surged by over 3%, and the token now trades at $0.00001216, with a market cap exceeding $5.8 billion, making it the 22nd largest cryptocurrency.

According to IntoTheBlock, more than 83% of the token investors are now in profit. This strong buying pressure and market sentiment bodes well for the token’s future.

A key moment in PEPE’s recent rise was when it broke above a significant bullish pattern, as observed by World of Charts, a renowned crypto analyst. In a tweet, they highlighted how the token broke out of a bullish pennant pattern, indicating a possible 30% rally.

This pattern emerged in July, with the token consolidating within it. If this trend continues, we could see PEPE reaching $0.000017 in the coming weeks.

Furthermore, Santiment’s data shows a drop in PEPE’s supply on exchanges while its supply outside exchanges increased. This shift suggests a rise in buying pressure. Moreover, the exchange outflow for the token spiked last week, further emphasizing the increasing demand.

Interestingly, whale activity remained flat, with the top addresses holding PEPE showing no significant changes. However, despite the stable whale activity, the memecoin’s buying pressure and market sentiment remained bullish.

One metric that was notably high last week was the MVRV ratio, indicating that many holders are in profit. Another positive sign was the stable daily active addresses for the token.

On the other hand, not all metrics pointed upwards. PEPE’s network growth saw a decline, suggesting fewer new addresses were created to transfer the token. Additionally, the Relative Strength Index (RSI) showed a downtick, hinting at a possible price correction ahead. However, the Money Flow Index (MFI) indicated an uptick, suggesting continued bullish momentum.

In summary, PEPE’s recent price surge and break above a bullish pattern signal potential for further gains. While some metrics suggest caution, the overall outlook for the token remains optimistic. Investors should watch for continued bullish signals and any changes in whale activity to gauge the meme coin’s next move.