Pepe [PEPE] has emerged as a standout in the world of memecoins, especially as the altseason draws nearer.
A study of DEX positions for Pepe revealed varying buy/sell volumes over time, with particular emphasis on a recent surge in buying activity among astute DEX traders.
These traders notably increased their holdings, as evidenced by the uptick in green bars observed in early November. This coincided with a notable spike in the average buying price, indicating a prevailing bullish sentiment.
This behavior resulted in a 48% price surge over the past 7 days, according to CoinMarketCap.
Concurrently, the PEPE/WETH price action indicated a downtrend since May, but has since broken out of a symmetrical triangle following the recent spikes in volume and price.
This surge hinted at a renewed interest among traders, likely sparked by the accumulation patterns highlighted in the DEX analysis.
The synchronized movements on both charts indicated that Smart DEX Traders have strategically gathered PEPE tokens, anticipating a forthcoming uptrend.
These dynamics could potentially pave the way for Pepe to explore new price peaks, fueled by the significant recent buying activities and the likelihood of sustained demand from well-informed traders.
Volume Weighted Average Price Indicates Significant Breakout
Pepe has clearly broken out bullishly through the anchored Volume Weighted Average Price (VWAP) from the all-time highs, signaling a noteworthy breach of a significant resistance level that had held since May.
This development implied an upward trend, with the price recently entering more favorable territory for bulls.
The consistent resistance encountered at the VWAP and the subsequent breakout pointed towards strong buying momentum and the potential for a lasting upward trajectory.
Pepe’s successful breach of a historically resilient resistance level instills confidence that dips could present buying opportunities, reflecting an optimistic market sentiment.
Investors who focus on precise entries at this stage may position themselves strategically for potential gains, which could amount to 3 to 5 times the current prices.
This growth potential appears more promising if the momentum continues, indicating a favorable trend in the short run.
Pepe’s Global In/Out of the Money
An analysis of the “Global In/Out of the Money” metrics for Pepe offers valuable insights into price trends.
Currently, a majority of Pepe holders—approximately 77.87% or 97.48 million addresses—are ‘in the money,’ implying that their holdings are valued above the initial purchase price of Pepe.
This scenario suggests a base price level for PEPE if the prevailing sentiment and distribution trends persist.
Only 17.55%, or 21.98 million addresses, are ‘out of the money,’ indicating a lower potential for selling pressure from holders who might be aiming to breakeven or minimize losses.
There are approximately 5.73 million ‘at the money’ addresses, a relatively small figure that signifies fewer addresses are approaching profitability. If Pepe maintains similar patterns, the high percentage of ‘in the money’ holders could hint at a positive outlook.
This scenario suggests that Pepe could continue its upward trajectory, supported by the optimistic sentiment among profitable holders.
Such a high level of profitability among holders discourages immediate sell-offs and bolsters price stability, underlining the prevailing confidence in the market.