The daily chart shows that the price of Pepe Coin formed a double bottom at $0.0000057 between March and June. This pattern often leads to a strong bullish breakout, which explains why it reached a multi-month high of $0.00001652.
The price of Pepe has retreated as the cryptocurrency market crash intensifies amid fears of a widespread crisis in the Middle East. Technically, this drop is part of the ongoing bullish trend, as the coin appears to be targeting the neckline of the double bottom at $0.000009257. This price action is known as a breakout and retest pattern and is usually a continuation signal.
The ongoing pullback is also part of the formation of the bullish flag pattern. A bullish flag consists of two parts: a pole and a flag. In this case, the pole starts at $0.000005741 and ends at $0.00001625, giving it a length of $0.00001050.
Pepe is forming the flag section, characterized by a downward channel. Therefore, the target price of the coin is estimated by adding the length of the flagpole and the potential breakout point, which in this case is around $0.00001200. This gives it a target price of $0.00002250, 116% above the current level. A move above that price will increase the chances of the coin reaching its all-time high of $0.00002827.
A drop below the support at $0.000009257 would invalidate the bullish price forecast for Pepe Coin and risk a drop to the double bottom at $0.000005741.
Another bullish catalyst for Pepe's price is that on-chain data shows that whales have started to accumulate it. As shown in the chart below, whales have increased their holdings to 7.61 trillion, up from 7.23 trillion in the same period last month. Whale accumulation is often considered a bullish catalyst for an asset, as these investors have extensive experience.
Another data point, clearly visible in the chart below, is that exchange balances have shown a downward trend. These balances currently stand at 249.19 trillion, a 2.1% decrease from the previous month. This decline in balances indicates that investors are transferring their tokens from exchanges to self-custody, where they intend to hold them for an extended period.
Meanwhile, futures activity points to increased demand and optimism among traders. CoinGlass data shows that open interest in futures has risen to $537 million, its highest level since June 12, and above this week's low of $457 million.
Pepe's funding rate has also remained positive, indicating that investors in the futures market expect the price to be higher than the current one. These fundamentals could drive the price of Pepe Coin upwards.
The price of Pepe Coin has shown a downward trend in recent weeks. However, its technical indicators, such as the bullish flag pattern, and its fundamentals, such as the funding rate and open interest, indicate that a rebound is on the horizon.
Follow me for more analysis and news, give a 👍 and share, it would help me a lot to keep growing.
