Pepe Price Poised for 36% Rally, Can It Capitalize on Market Rebound
Pepe price is among the few tokens on the crypto market sporting potential bullish reversal signs. Most crypto assets show small rallies following Bitcoin’s recovery, but only a few truly show hope for a reversal, and Pepe is one of them. Pepe sports a bullish chart pattern on the daily timeframe that could propel the asset by 36% in the short term. On-chain metrics also hint at a possible trend turnaround should Bitcoin recovery continue.
Pepe Price Eyes Full Recovery
The price of Pepe is trending bearish within a falling wedge pattern, which often indicates a potential reversal. The 50-day exponential moving average (EMA) at $0.00001056 and the 200-day EMA at 0.00000845 are trending above the current price, confirming the downward trend.
Pepe has a temporary support level at $0.0000075, just above the recent lows. On the other hand, immediate resistance exists around $0.00000845 (200-day EMA), followed by the upper boundary of the wedge at around $0.0000095. If bulls prevail, Pepe price may surge 36% from the current level to the top of the falling wedge.
The relative strength index (RSI) is at 36.74, indicating it is close to oversold territory, suggesting a potential for a price bounce. The Chaikin Money Flow (CMF) is at -0.05, showing some selling pressure but not overly strong.
The price movement within the falling wedge pattern suggests a corrective wave. The recent bounce from the lower boundary could indicate the end of a corrective wave.
If Pepe rallies 36% and closes above the 50-day EMA, it will signal an increase in market strength. Price may break above the falling wedge and extend gains by 48% back to the previous ATH price.
Overall, the falling wedge pattern suggests a potential reversal, especially in the event of increased volume.
On-Chain Metrics Support Rebound
On-chain data from Coinalyze shows that Pepe open interest (OI) increased by 9.6% in the last 24 hours. Coupled with rising prices, this signals a bullish sentiment for the Pepe price.
Following the August 5 market crash, there was a spike in large transaction volume on Pepe, signaling an uptick in whale activity, potentially scooping up tokens at a discount. This whale activity was the largest in the last month.
Since the market recovery began on August 6, the majority of Pepe holders have shifted back into profits. IntoTheBlock data shows that 57.8% of holders are in profit.
Additionally, if Pepe price rises and breaks above the 50-day EMA ($0.00001177), 122.12 trillion Pepe tokens currently underwater will shift to profitability.
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