Although Pepe [PEPE] has been facing a prolonged downtrend on its monthly and daily charts, it has managed to eke out a modest 0.94% gain over the past week.
Current market trends suggest that the memecoin is preparing for a possible rally, targeting a return to its previous peak in May at $0.00001725 and potentially surpassing it with favorable conditions aligning.
Optimism Surfaces with Significant Whale Movement
Recent data from Lookonchain has unveiled a substantial move where a whale — an entity holding a significant number of tokens — shifted 4 billion PEPE tokens, valued around $29,868,000, from the centralized exchange Bybit to a private wallet.
Such transfers from centralized exchanges to private wallets generally indicate rising confidence among investors, potentially leading to supply constraints.
A supply constraint arises when the available cryptocurrency supply becomes restricted, often resulting in increased prices as demand persists, causing buyers to vie for a diminishing pool of coins.
Despite such positive developments, PEPE’s price experienced a slight dip of 3.93% in its daily trading activity. Nonetheless, CryptoCrypto speculates that a rally could be on the horizon.
Positive Technical Positioning Favors PEPE
Presently, PEPE is trading within a bullish symmetrical triangle, characterized by converging diagonal support and resistance lines forming a sloping structure.
Typically, prices fluctuate within these boundaries until a breakthrough emerges near the convergence point.
PEPE currently stands at this pivotal moment, having bounced back from the lower support line — a significant impetus for potential movements. This rebound closely aligns with the convergence zone.
If a breakout transpires, PEPE is poised to revisit its apex price within the pattern, established back in May at $0.00001725, potentially surpassing it for further gains.
Moreover, the Moving Average Convergence Divergence (MACD) serves as a vital tool in pinpointing asset reversal points by offering buy and sell signals based on price trend strength, hinting at a potential rally for PEPE.
A bullish crossover materializes when the MACD line (blue) surpasses the Signal line (yellow), accompanied by rising volume — a scenario recently reflected by the memecoin, setting the stage for a possible upsurge.
Increasing Open Interest in PEPE Indicates Potential Growth
The rising open interest in PEPE, a notable indicator of retail trader engagement, has shown a considerable uptick, signifying an ongoing momentum trend, with current figures standing at $91.16 million according to Coinglass.
Essentially, the surge in open interest implies a rise in active contracts yet to be settled, indicating a strengthening trend as new investments or positions enter the market, potentially signaling a bullish outlook.
If this pattern continues, a rally for PEPE seems increasingly likely.