Despite facing some challenges and experiencing a 5.77% dip in the last month, Pepe [PEPE] has shown strong signs of recovery recently, with an impressive 16.11% surge on its weekly chart. Encouraging indicators hint at a sustained upward trajectory.
CryptoCrypto has outlined the pivotal factors that might fuel PEPE’s anticipated surge.
Decrease in Buying Pressure amid Symmetrical Triangle Formation
Currently, the coin is trading within a symmetrical triangle pattern, marked by converging upper and lower lines that act as resistance and support levels respectively.
PEPE recently broke out of a significant horizontal support zone at 0.00000701, advancing towards the upper resistance line of the triangular pattern at 0.00000876. This resistance holds significance as it coincides with another crucial level, underscoring its strength.
While symmetrical triangles generally hint at potential bullish outcomes, a successful breach above the upper resistance line is crucial. Surpassing this barrier could propel the meme coin towards its 2024 peak of 0.00001725 or a mid-range target of 0.00001307.
If PEPE fails to surpass this resistance, it might retreat to the horizontal support at 0.00000701 or the lower boundary of the triangle as it regains momentum for another upward thrust.
CryptoCrypto has examined PEPE’s prospects of breaking through the upper resistance line within the symmetrical triangle. Here are the insights gleaned.
On-chain Data Point towards an Impending PEPE Surge
Analysis from CryptoCrypto utilizing on-chain metrics sourced from Coinglass unveils a substantial accumulation of PEPE by both institutional investors and retail traders, who are increasingly initiating long positions.
Open Interest, a critical gauge of trader sentiment, has observed a significant uptick. It escalated from $95.68 million on September 23 to $114.39 million by September 25, indicating growing trader interest in the meme coin.
Moreover, the substantial outflow of PEPE from exchanges has resulted in a negative NetFlow, signaling that market participants are transferring PEPE to self-hosted wallets for long-term hodling, showcasing their faith in the asset’s potential value appreciation.
Such movements often trigger a scarcity in supply, potentially driving prices higher and breaking above established upper resistance thresholds.
Additional Bullish Signals Arise
By utilizing the Relative Strength Index (RSI), a technical tool designed to gauge price momentum and strength, CryptoCrypto has pinpointed a potential rally for PEPE.
Presently, the RSI demonstrates an upward trend with a reading of 56.75, indicating a probable price uptrend. Given the usual correlation between RSI trends and price movements, an ascending RSI typically foreshadows a corresponding price surge for the asset.