PEPE investors rejoiced last week with significant profits, propelling the memecoin towards a vital resistance level. Is a breakout looming for PEPE, potentially leading to a 200% increase in value soon?
Anticipating a PEPE Breakout
Last week saw PEPE bulls dominating as the memecoin’s price soared over 21% in the past seven days and 5% in the last 24 hours alone.
Presently, PEPE is trading at $0.00001098, benefiting more than 243.5k investors with profits, representing 77% of all PEPE addresses, according to IntoTheBlock.
A bullish pattern identified by World Of Charts on PEPE’s chart indicates an impending breakout. The bullish pennant pattern, noticeable since March, has set the stage.
Currently, with the memecoin’s price testing the pattern’s resistance, a potential 200% surge is within reach for investors.
Assessing the Likelihood of a Breakout
Amid PEPE’s test of the bullish pennant pattern resistance, CryptoCrypto delved into memecoin’s on-chain data for insights into a potential breakout.
After analyzing Santiment’s data, rising buying pressure was evident as the memecoin supply outside exchanges increased while on-exchange supply decreased.
Moreover, PEPE whales displayed confidence by adding 5.5 million USDT for acquiring $5.07 million worth of PEPE on Binance. Nonetheless, slight drops in top address holdings hint at a potential whale sell-off amidst the price spike.
Despite this, overall sell pressure remains low; Hyblock Capital’s data revealed a significant drop in sell volume, from 100 to 17, signaling investor reluctance to divest holdings, a bullish indicator.
Technical indicators from PEPE’s daily chart revealed that following a steep rise, the memecoin’s price touched the upper Bollinger Bands limit.
Typically, touching this limit precedes price corrections, potentially leading PEPE to retrace towards its 20-day Simple Moving Average (SMA) for support.