The cryptocurrency market points to an extended correction trend as Bitcoin price plunged to a low of $61000 on Tuesday. Amid the market sell-off, Pepe, the Frog-theme memecoin tumbled 7.3% struggling to hold its value above the 38.2% Fibonacci retracement level at $0.0000065. However, analysis of the 4-hour chart shows the Pepe coin price is still developing a bullish pennant pattern indicating the potential for uptrend continuation.

Also Read: Pepe Coin Escape From Channel Pattern Hints A Price Rally to $0.00001

Large-Scale Withdrawal of PEPE Tokens Signals Potential Market Rebound

Pepe Coin Price| Tradingview

Along with the initial bullish sentiment around Bitcoin halving, the Pepe price bounced back from $0.0000046 to $0.00000819, recording a 78% growth, however, the recovery momentum was exhausted as the broader market witnessed the post-halving correction reverting Bitcoin below $65000.

Thus, the Pepe Coin price resonated sideways for over a week and reflected a lack of initiation from buyers within long-wick rejection candles. However, this consolation developed within two converging trendlines indicating the formation of a pennant pattern.

This technical setup encourages a period of lateral movement for buyers to recuperate bullish momentum for higher rallies.

Moreover, a recent transaction highlighted by Lookonchain revealed a withdrawal of 329.3 billion PEPE tokens, worth about $2.46 million, from Binance within 10 hours. This large-scale movement hints that the smart money expects a potential rebound in Pepe price and resumes the prevailing rally.

A smart money withdrew 329.3B $PEPE($2.46M) from #Binance and #MEXC in the past 10 hours.

The smart money sold all $UNI before $UNI dropped and made more than $7M.https://t.co/fAwoyJbcMNhttps://t.co/P9smB5CYxH pic.twitter.com/VaQ63RbwK1

— Lookonchain (@lookonchain) April 30, 2024

Thus, the PEPE price is better positioned to break the pattern’s overhead trendline. This breakout will provide buyers with suitable support to extend the recovery rally to $0.000009, followed by $0.0001084.

Technical Indicator

Moving Average Convergence Divergence: The MACD (Blue) and Signal (orange) wavering around the midline indicate the market trend is still wavering in uncertainty and will need higher conviction like the aforementioned breakout from the pennant pattern to resume a bullish rally.
Exponential Moving AverageIndicator: The coin’s price rising above the 200-day EMA slope suggests a bullish sentiment in the near-term market cycle.

The post Here’s Why Pepe Coin Price Sees a 20% Breakout Rally in May appeared first on CoinGape.

---

Filed under: News - @ January 1, 1970 12:00 am