Discover why the declining Pepe Coin price may be on the verge of a strong bullish breakout in the near term.
$PEPE Coin price is trading at $0.00001042 today, June 19, down 36% from its high in May. It has crashed more than 62% from its all-time high, valued at more than $5.7 billion. Still, Pepe’s technicals, falling exchange balances, and whale buying suggest that it is not dead yet.
Technical analysis of PepeCoin price indicates that a rebound is coming.
The daily time frame shows that $PEPE Coin price formed a double bottom pattern at $0.0000057 between March and June. This pattern often leads to a strong bullish breakout, which explains why it jumped to a multi-month high of $0.00001652.
The price of PipCoin has now pulled back after the crypto market crash intensified amid fears of a major crisis in the Middle East.
Technically, the crash is part of an ongoing bull run as the coin appears to be hitting a double bottom neckline at $0.000009257. This price action is known as a break and retest pattern and is often a continuation sign.
The ongoing pullback is also part of a bullish flag pattern formation. A sharp flag consists of two parts: a flag and a flag. In this case, the flag pole starts at $0.000005741 and ends at $0.00001625, with a length of $0.00001050.
$PEPE is now forming a flag section, characterized by a falling channel. Therefore, the price target for the coin is estimated by adding the length of the flag pole and the potential breakout point, which in this case, is approximately $0.00001200.
This gives it a price target of $0.00002250, which is 116% higher than the current level. A move above this price will increase the odds of the coin reaching an all-time high of $0.00002827.
A break below the support at $0.000009257 will quickly invalidate the Pepe Coin price forecast and risk a double bottom at $0.000005741.
Buying wheels and exchange balances falling.
A second bullish catalyst for Pepe's price is that on-chain data shows that whales have started to accumulate it.
As the chart below shows, whales have increased their holdings to 7.61 trillion, up from 7.23 trillion in the same period last month. Whale accumulation is often seen as a catalyst for a bullish move for an asset because these investors are highly experienced.
Another piece of data, which is clearly visible in the chart below, is that exchange balances have been on a downward trend.
These balances now stand at 249.19 trillion, down 2.1 percent from a month ago. The falling balances indicate that investors are moving their tokens from exchanges to self-custody, where they intend to hold them for the long term.
Pepe Futures Open Interest and Funding Rate
Meanwhile, futures activity points to high demand and optimism among traders. Data from CoinGlass showed open interest in the future rose to $537 million, its highest point since June 12, and up from this week's low of $457 million.
Pepe's funding rate also remained in the green, a sign that investors in the futures market expect the price to be higher than today. These fundamentals could help propel Pepe Coin’s price higher.
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