Pepe price is steadily consolidating and is in the final stages of triggering a massive rally. The sideways movement of the frog-based meme coin PEPE resembles the price action between March and May, which eventually led to a 121% rally in roughly three weeks.

Pepe Price Eyes Huge Breakout Rally

Pepe price is inside a seven-week consolidation phase that is edging closer to a breakout. This setup is quite similar to the one witnessed between early March and May, which led to a 121% rally.

This consolidation phase contains three stages before the rally kicks in.

Accumulation: Here, institutional or smart money investors accumulated inside a tight range.
Manipulation: Following this, the PEPE price crashed lower to lure short sellers, but the sudden reversal trapped short positions.
Pre-pump consolidation: Ideally, the end of manipulation is followed by a massive rally to the upside. But in this case, the frog-based meme coin consolidated again before triggering an explosive uptrend.

The third stage lasted ten days for the Pepe price, and the breakout from the pre-pump consolidation led to a 121% rally, the fourth step. This fractal shows remarkable similarities to the ongoing consolidation.

At the time of writing, the PEPE price trades at $0.0121 and is in the third stage, aka pre-pump consolidation. The upper limit of this consolidation coincides with the $0.0127 resistance level, and a breakout of this level signals the start of the explosive rally phase. Investors can wait for a decisive daily candlestick close above the $0.0133 resistance level to flip it into a support floor.

If successful, PEPE price could kickstart the explosive rally phase.

The targets for this uptrend include the 161.8% and 216.8% Fibonacci Extension Levels of $0.0198 and $0.0254, respectively. These targets are 55% and 100% from the $0.0127 resistance level.

PEPE/USDT 1-day chart

Supporting this massive rally for PEPE is IntoTheBlock’s Global In/Out of the Money (GIOM) metric. This indicator shows there are no meaningful hurdles that are likely to block Pepe’s uptrend.

Roughly 33,300 addresses that purchased 55 trillion PEPE between the $0.0110 to $0.0130 range are at breakeven. Investors need to keep a close eye on $0.0110, a breakdown of which could put these holders “Out of the Money,” increasing the odds of selling and triggering a crash.

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As long as these holders remain at breakeven or profitable, the PEPE price has a high chance of kickstarting the uptrend. Beyond the aforementioned cluster, there are no major underwater investors who could hinder the uptrend.
Hence, the ongoing consolidation in PEPE price could be a huge buying opportunity for sidelined investors.

PEPE GIOM

On the other hand, if Pepe price breaks the key support level of $0.0107 on the daily time frame, it would create a lower low and invalidate the bullish thesis. Such a development could trigger a 10% drop to $0.00968.

The post PEPE Price Consolidation Forecasts 100% Rally If History Repeats appeared first on CoinGape.

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Filed under: News - @ July 29, 2024 1:45 pm