PEPE’s next big move – How a breakout could push it towards a new ATH

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  • PEPE outperformed rivals post its Coinbase listing, with consolidation possibly ahead
  • If a certain strategy plays out, a quick rebound can be expected from the memecoin

As a seasoned analyst with over two decades of trading experience under my belt, I’ve seen markets rise and fall, bubbles burst, and fortunes made and lost. The current memecoin landscape is reminiscent of the dot-com boom, where small players could make a big impact. And Pepe [PEPE] is one such player making waves in this market.

The market for meme coins is getting more lively, and one coin, Pepe [PEPE], is quickly gaining attention. In only seven days, it has seen triple-digit growth, putting it just behind the leader on the weekly chart of biggest gainers. This places Pepe as a strong contender looking to dethrone Dogecoin‘s [DOGE] long reign at the top.

Currently valued at $0.00002199, PEPE reached a record peak after it was listed on Coinbase two days back. Yet, a minor setback has led to a 14% decrease in its value.

Consequently, numerous traders who sold at the initial price of $0.00001921 find themselves either bearing losses or seeking fresh opportunities. This situation presents a favorable condition for a potential short squeeze, where the price could surge rapidly as these traders exit their positions or re-purchase them.

THIS setup presents critical opportunity for bulls

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

It’s noteworthy that bears, or those who sell with the expectation of a price decrease, have been aggressively selling PEPE for most of this month. This has led to a strong resistance level and prevented the memecoin from reaching its all-time high (ATH) of $0.00002524 once more.

Source : Coinglass

Consequently, even with the addition of Coinbase, the memecoin experienced a period of stabilization and traded between specific boundaries of approximately $0.00002100 and $0.00002400.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Normally, when traders take short positions during a hike while the price is dropping, it usually indicates they expect a steep increase (parabolic move), forcing them to sell their positions to minimize losses. This back-and-forth between buyers and sellers establishes an equilibrium, keeping the price within a limited range.

On the other hand, this configuration offers a significant chance for the stock market’s optimistic investors. If there’s a breakout following the consolidation phase, it might compel those who have shorts (or borrowed shares to sell) to purchase these shares back, thereby driving up the price as traders who earlier sold or shorted will scramble to re-purchase at this crucial price level.

Bulls must maintain conviction to drive PEPE forward

On the day it went public, a massive six trillion PEPE tokens were taken off exchanges by traders, leading to an impressive 47% price jump in a single day and setting a new record high for PEPE.

As an analyst, I’ve noticed a substantial pullback by major token holders. The daily withdrawal figures have plummeted to approximately 942 billion tokens, marking a dramatic decrease from the staggering 4.8 trillion tokens that were withdrawn merely two days ago.

This temporary decrease suggests a dwindling belief in PEPE’s future growth prospects. To escape its ongoing struggle and regain its leading position on the rankings, it is crucial for PEPE to reverse this pattern.

If the enthusiasm doesn’t regain its pace following the Coinbase listing and the election period, the bulls might find themselves facing more bearish pressure without a compelling reason to push back.

Read Pepe’s [PEPE] Price Prediction 2024-25

If bulls persistently buy when the current price is viewed as a discount, it might trigger a short squeeze, potentially pushing the PEPE token up to $0.00002530.

It appears this situation could be more plausible considering the general optimistic mood in the market. Furthermore, Bitcoin‘s [BTC] recent burst over crucial psychological barriers makes PEPE an attractive choice as a robust option during increasing market turbulence.

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2024-11-17 00:08