Whale accumulation and holder positioning suggest that a potential bullish reversal is brewing.
Most Pepe holders are underwater or...
On-chain data indicates that over 63% of Pepe holders are currently in loss, while only 19.17% of holdings are profitable. Additionally, 17.15% of addresses are holding PEPE at breakeven levels.
This suggests that bullish momentum could lead to significant selling pressure from these holders. However, if whale accumulation and demand continue, this selling pressure could also drive upward momentum.
Reversal or a fakeout?
Pepe has formed a textbook inverse head and shoulders pattern on the daily timeframe, which often precedes bullish breakouts. The pattern is forming below a long-term descending trendline, indicating a breakout may be imminent.
Key resistance is around 0.00$ 0. A successful approach above this level could send the price soaring to $0.00001146.
However, failing to break the neckline may lead to consolidation or a drift toward the support area of 0.00$ 0.
Why the NVT ratio spike is more important than you think
Santiment data shows that the Pepe NVT ratio has spiked dramatically to 321.77, a significant increase from previous levels. This indicates that network value is growing faster than trading volume.
While this surge may suggest overvaluation, it is often associated with accumulation phases, where trading activity temporarily slows as holders expand their positions.
As a result, the current spike may not be a weakness but rather the potential to build bullish momentum.
Ultimately, Pepe shows strong signs of a breakout. Whale accumulation, bullish chart patterns, and strategic positioning of holders all point towards upward potential.
While caution is still needed before breaking the neckline, the overall signals are clear. Pepe is on the brink of significant action, with odds increasingly favoring the bulls.
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