Pepe price is poised for a potential breakout, riding a short-term bullish trend. Over the past few weeks, the price of PEPE has surged in tandem with increased Ethereum ETF inflows, highlighting its correlation with the second most popular crypto asset. Active accumulation by Pepe whales signals anticipation of further price increases. As Ethereum gains traction in traditional finance, meme coins like Pepe may outperform many other cryptocurrencies.

Pepe Price Analysis Reveals Indecision

The price of Pepe coin increased by 2.9% in the last 24 hours to trade at $0.00000821. However, the asset is overall in a downward trend since the price is below both the 50-day and 200-day exponential moving averages (EMAs). 

The recent price action shows some consolidation within a symmetrical triangle pattern, which could indicate a period of consolidation before a breakout. The direction of the breakout will determine the next significant move for PEPE. 

Pepe faces resistance around $0.00000890 and $0.00000969. If the price breaks above the latter, PEPE may extend gains by 24% to reach $0.00001200. Conversely, if bears prevail, the PEPE price may find lower support around $0.00000800 and 0.00000700. 

According to CoinGecko data, the volume was relatively low during the consolidation phase. This is typical of a pattern nearing a breakout, and a volume spike will be necessary to confirm the direction of the breakout.

The Relative Strength Index (RSI) at 48 suggests a lack of strong momentum in either direction but also that there is room for a potential move either up or down.

Pepe price analysis chart

PEPE price is currently at a critical point within the market structure. While the symmetrical triangle suggests indecision, whale accumulation sheds some light as to which direction Pepe is likely to take.

Why are Whales Accumulating PEPE?

Pepe whales are gearing up for positive price action as they have accumulated the token over the past 24 hours. According to IntoTheBlock data, the Pepe large holder net flow slipped back into the positive side between August 12 and 13, adding over $1 million to their stash.

PEPE Netflow

Additionally, Coinalyze reports a 5.43% increase in Pepe’s open interest (OI), which indicates a rise in optimism and bullish sentiment among traders.

Pepe open interest

Pepe also has a strong correlation with Ethereum, ERC-20 tokens, and EVM-based Layer 2 network solutions. With Yahoo Finance recognizing Grayscale’s ETF as a legitimate investment opportunity, Ethereum could gain more attention from traditional investors, potentially bringing in new capital. Given the high correlation, a win for Ethereum is likely to benefit the Pepe price as well.

Pepe coin correlation

In the coming days, Pepe coin price could break out of its current bullish setup, shifting market sentiment further toward the positive. If this breakout occurs, over $328 million worth of PEPE currently teetering between loss and profit could be saved.

PEPE IOMAP

To achieve this, Pepe needs increased trading volume to push beyond the overhead resistance at the 200-day EMA. If successful, over 40.13 trillion PEPE could transition into profitability.

The post Ethereum-Based Meme Coin Pepe Price Could Bounce 24% as Whales Accumulate appeared first on CoinGape.

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Filed under: News - @ August 14, 2024 9:21 am