Pepe [PEPE] has emerged as a meme-based cryptocurrency with significant growth potential in the fourth quarter of 2024. Following an impressive spike of over 1000% post its consolidation phase, PEPE has garnered substantial interest.
Initially stuck in a sideways market after its launch on the Ethereum blockchain, PEPE/USDT is now shaping a triangular formation.
This consolidation, coupled with narrowing Bollinger Bands, indicates a potential breakout on the horizon. Traders are gearing up for a possibly bullish closure to the year, backed by past patterns.
Currently, the cryptocurrency is consolidating within a triangular structure, with Bollinger Bands constricting. Such a formation often hints at an impending breakout in the short term.
Past data reveals that these setups typically precede significant price actions. The Chaikin Money Flow has also broken out of its wedge setup, signaling the end of the accumulation phase.
With the rising CMF, buying pressure surges, hinting at a likely substantial upsurge for the memecoin.
The prolonged consolidation since May further bolsters the chance of a robust rally if the market conditions favor alternative coins.
Pepe’s Positive Funding Rates
The funding rates have turned favorable, adding more weight to the bullish narrative surrounding the Pepe meme cryptocurrency.
When funding rates are positive, it indicates a higher inclination towards long positions from traders, reflecting an optimistic sentiment.
This scenario signifies that long traders are compensating short traders to maintain their positions. Such a trend often leads to an augmented demand for assets and escalated prices.
However, this situation also escalates the risk of long position liquidations if the market dynamics shift.
Address Holdings and Whales
An analysis of wallet addresses by their holdings in USD reveals a persistent increment in positions held by whales. Traders possessing more than $10 million worth of PEPE have surged by 5.26%.
While retail traders with smaller stakes are also on the rise, medium-sized traders have observed a marginal decline.
Nevertheless, the continued aggressive accumulation by whales underlines a robust faith in PEPE’s future potential.
Adoption Rate Update
The current adoption rate for Pepe stands at 26%, portraying a steady trend without any dips. This consistent adoption rate indicates a gradual but steady rise in trader participation, even if not as rapid as some enthusiasts might desire.
Nonetheless, a stable adoption rate generally bodes well and depicts an increasing interest in PEPE.
Overall, PEPE displays promising signals for a possible price surge. Crucial metrics, optimistic funding rates, strong whale activity, and a steady adoption rate collectively contribute to a bullish sentiment as we advance towards the fourth quarter of 2024.