Pepe’s rally not over: Targets 2024 highs after triangle breakout

by
    Should it break out from the current ascending triangle formation, PEPE is expected to reach its annual high of 0.00001725.
    Both whales and retail investors are tactically accumulating PEPE, positioning themselves ahead of the anticipated surge.

As a seasoned researcher with years of experience navigating the volatile world of cryptocurrencies, I find myself increasingly intrigued by the trajectory of Pepe [PEPE]. Despite a bumpy ride this month, the coin’s recent performance shows promising signs of recovery, suggesting that it might just be gearing up for a significant surge.

Even though the past month saw a 5.77% decrease (drawdown) for Pepe [PEPE], its latest performance is encouragingly pointing towards recovery, as it has climbed by 16.11% over the last week. Additionally, several positive signs hint at sustained growth in the coming days.

AMBCrypto has detailed the key factors that could drive PEPE’s expected rally.

Buying pressure eases amidst symmetrical triangle formation

Currently, the coin is being exchanged inside a symmetrical triangle, which features diagonal lines that converge and act as both potential resistance and support levels.

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

PEPE has recently climbed from a strong horizontal support point at 0.00000701, reaching the upper boundary of its triangle formation at 0.00000876. This upper limit corresponds to another significant resistance level, underlining the robustness of this barrier.

In simpler terms, for a memecoin to reach its potential bullish outcomes (rise in value), it’s crucial that it breaks through the upper resistance line first. If it manages to surpass this level, it could potentially reach its high from 2024 of 0.00001725 or a mid-level target of 0.00001307.

If PEPE cannot break through this resistance, it may pull back towards the horizontal support level at 0.00000701 or the bottom edge of the triangle, trying to regain strength for another potential rise.

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

In this analysis, AMBCrypto examines if meme token PEPE can surpass the upper boundary of its symmetric triangle pattern. The following are the key findings.

On-chain metrics suggest an impending PEPE rally

According to AMBCrypto’s analysis based on data from Coinglass, there has been significant buying activity in the PEPE cryptocurrency, with both large investors (whales) and smaller individual investors (retail traders) increasing their long positions.

The level of excitement among traders in the market, as measured by Open Interest, has experienced a significant rise. It climbed from approximately $95.68 million on September 23rd to $114.39 million by September 25th, indicating a growing interest in the memecoin.

In addition, a large amount of the token PEPE is being withdrawn from exchanges, resulting in a net outflow. This usually means that market participants are moving PEPE to personal wallets for long-term storage, suggesting they have faith in the token’s future growth prospects and believe it will appreciate in value.

Read morePEPE flips Optimism: Can OP emerge from the memecoin mania?

Frequently, these actions lead to a reduction in supply, a situation that might push prices up significantly, possibly surpassing the previously set upper price limits.

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

Further bullish indicators emerge 

By examining the Relative Strength Index (RSI), a tool that gauges the speed and size of price changes, AMBCrypto predicts a possible surge in PEPE‘s value.

At the moment, the Relative Strength Index (RSI) is showing an increase, indicating a potential rise in the asset’s price as well. Since the RSI and the asset’s price usually move together, an uptrend in the RSI often signals a similar upward trend for the asset’s price.

Read More

2024-09-26 06:15