News & Analyses

Meme coin PEPE could trigger a rally

  • Pepe price shows signs of a potential comeback as it retest the a declining resistance level.
  • A successful breakout could kick-start a 56% move to the upside as whales continue to accumulate on dips.
  • A breakdown of the $0.00000581 support level will invalidate the bullish thesis for the meme coin.

Pepe’s (PEPE) recent price action suggests that its consolidation could be coming to an end, but a breakout confirmation is required before PEPE shoots up. While the bullish outlook does seem encouraging, there are a lot of considerations investors need to understand before diving head-first into buying this meme coin on the dips.

Also read: Top 3 meme coins price prediction Dogecoin, Shiba Inu, Bonk: Memes face steeper correction than Bitcoin

Pepe price suggests a comeback

Pepe price has been trading between the $0.00000581 to $0.0000109 range for roughly seven weeks. This consolidation has produced a range-low deviation, which was followed by a quick recovery above the range-low. Going forward, investors can expect a retest of the recently flipped range low to serve as a support floor, kick-starting the next leg up. 

So far, Pepe price has been hovering above the $0.00000581 range low and shows signs of a premature spike in buying pressure. If this bullish momentum is maintained, investors can expect PEPE to retest and breach the declining resistance level that connects the lower highs formed since March 14. This move would serve as confirmation of breakout and kick-start a Pepe price rally to tag the range’s midpoint at $0.00000835. 

If the buying spree continues, Pepe price could reach the range high at $0.0000109, constituting a 56% gain. In some cases, the range high deviation could occur, pushing PEPE well-beyond the range high and into a new yearly high.

PEPE/USDT 12-hour chart

PEPE/USDT 12-hour chart

Supporting this potential upward trajectory of Pepe price is Santiment’s Market Value to Realized Value (MVRV) ratio indicator. This index is used to track the average profit or loss of investors who purchased PEPE. 

In this case, the 30-day MVRV at 4.86% suggests that the average profit of investors who bought PEPE in the past month is at 4.86%. This relatively neutral number has recovered from -28.97% on April 13, indicating that the short-term buyers were underwater. Typically, long-term or value investors tend to accumulate the altcoins sold at a discount by short-term investors who are underwater.

Considering that PEPE has rallied nearly 40% since the April 13 dip, it is safe to say that long-term investors have already filled their PEPE bags.

PEPE 30-day MVRV 

PEPE 30-day MVRV 

Further adding credence to this accumulation from whales is the Whale Transaction Count (WTC), which shows clear spikes around April 13, when PEPE price crashed by double-digits. This development clearly shows that whales or smart money investors already bought the dip on April 13 and did something similar on May 1 dip.

PEPE Whale Transaction Count

PEPE Whale Transaction Count

All in all, the outlook for Pepe price looks really bullish but is completely dependent on Bitcoin supporting the bullish agenda. On the other hand, if PEPE breaches the $0.00000581 support level, it would invalidate the bullish thesis for Pepe price by producing a lower low and skewing the odds in the bears’ favor. 

In such a case, PEPE could crash 15% and revisit the $0.00000490 support level, or a steep correction could see it retest the $0.00000381 swing low formed on April 13.

Source link

News & Analyses Analyses