Investors in PEPE token saw significant gains in the previous week, with a notable price increase propelling the meme-based cryptocurrency towards a crucial resistance mark. Could PEPE be preparing for a breakout, potentially leading to a substantial 200% surge in value?
PEPE Showing Signs of a Breakout
Over the past seven days, PEPE experienced a remarkable surge of over 21%, with a 5% increase in just the last 24 hours. Presently, the token is trading at $0.00001098, resulting in profits for approximately 243.5k PEPE investors, constituting more than 77% of total holders according to IntoTheBlock.
The market analyst World Of Charts recently highlighted a bullish pattern on PEPE’s chart, specifically noting the emergence of a bullish pennant pattern back in March. Since then, PEPE has undergone a phase of consolidation, currently testing the resistance of this pattern.
If a bullish breakout occurs, speculators anticipate a potential 200% price surge in the coming months, offering investors a possible lucrative return.
Likelihood of an Impending Breakout
With PEPE challenging the resistance level of the bullish pennant pattern, CryptoCrypto delved into on-chain data to ascertain the probability of a bullish breakout. According to an analysis of Santiment’s data, buying pressure on PEPE has been mounting, indicated by a decrease in supply on exchanges.
Moreover, reports from CryptoCrypto reveal that PEPE whales recently injected a substantial amount of capital into the market, demonstrating confidence in the token. Although a slight drop in the token’s supply held by top addresses was noted, overall sell pressure remained minimal.
Furthermore, examining technical indicators on PEPE’s daily chart, it was observed that the token had touched the upper Bollinger Band limit, typically preceding price corrections. In such a scenario, a potential pullback to the 20-day Simple Moving Average (SMA) support level might be on the horizon.