Could a $1 Whale-Driven Pump Bring $2 Billion to PEPE?
In the past 24 hours, more than $2 billion in trading volume has flooded into Pepe, a popular meme coin. While technical analysis suggests a breakout, a closer look at the closed PEPE price analysis reveals some concerning signs.
Pepe is currently ranked as the 29th biggest cryptocurrency and the third biggest meme coin by market cap. It surpasses its closest rival, DogWifHat, by an impressive $2 billion. Many retail traders are attracted to the technical structure of Pepe, as the price action seems poised for a major breakout that could potentially challenge Shiba Inu coin’s second-place position.
The bullish theory suggests that Pepe may be on the verge of a breakout. The current market price of PEPE is $0.00001055, with a 24-hour change of -3.58%. The price remains in a bullish pendant, with support at $0.0000085 and resistance at $0.000011.
The price of PEPE is teasing a break to the upside after a consolidation period. The successful retest of support earlier in the day has led to Pepe maintaining its position above the 20DMA. Moving averages support the bullish case, with a corrective “golden cross” pattern forming between the 20DMA and 200DMA over the weekend. The defense of the 20DMA earlier in the day has squeezed the price between the upper trendline and support, indicating a potential breakout in the coming days, especially with the support of multi-billion trade volumes. The next price target for PEPE could be $0.000013, representing a 23.5% increase from the current price.
However, there are concerns about the trajectory of Pepe’s price in the coming weeks. The recent upside may be fueled by aggregate open interest, which has surged due to talk of a meme coin super cycle driven by taker-buy positions. This is concerning because despite sell pressure dominating Pepe’s volumes in the past week, the price has continued to climb. This suggests unhealthy moves to the upside and raises the possibility of a significant correction as market makers try to flush out over-leveraged traders. Additionally, there is a serious ceiling of resistance between $0.000013 and $0.000014, with the price being rejected from this level three times since June 2024.
While PEPE holders face uncertainty, retail traders may not be enticed by a modest 23.5% increase in the midst of a booming meme coin super cycle. Pepe’s growth potential is limited as it is stuck on the ERC-20 token standard with no real ecosystem. This is where Pepe Unchained comes in. It aims to create a standalone blockchain for Pepe, similar to Shiba Inu’s Shibarium layer-2. Pepe Unchained plans to launch various dApps, including a cross-chain bridge, a block explorer, and a developers grant fund. Investors can participate in the $PEPU token presale, which has already raised $18.75 million. By staking the presale tokens, investors can earn a market-beating 116% APY.
Investing in crypto carries high risks, and this article is for informational purposes only and should not be considered investment advice.