Pepe price is one of the few tokens in the crypto market that are showing potential bullish trend reversal signals. Most crypto assets are showing small rallies following Bitcoin’s recovery, but only a few are really giving hope for a trend reversal, and Pepe is one of them. Pepe is showing a bullish chart pattern on the daily time frame that could boost the asset by 36% in the short term. On-chain metrics also suggest a possible trend reversal should the Bitcoin recovery continue.
Pepe Price aims for full recovery
Pepe’s price is trending bearishly inside a falling wedge pattern, which often indicates a possible 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 downtrend.
Pepe has a temporary support level at $0.0000075, just above the recent lows. On the downside, an immediate resistance is around $0.00000845 (200-day EMA), followed by the upper boundary of the wedge at around $0.0000095. If the bulls prevail, Pepe price could rally 36% from the current level to the top of the falling wedge.
The Relative Strength Index (RSI) is at 36.74, close to the oversold zone, suggesting a possible price recovery. The Chaikin Money Flow (CMF) is at -0.05, showing some selling pressure, but not excessively strong.
Price action within the falling wedge pattern suggests a corrective wave. The recent rebound from the lower boundary could indicate the end of a corrective wave.
If Pepe rises 36% and closes above the 50-day EMA, it will signal an increase in market strength. The price could break above the falling wedge and extend gains by 48% to the previous ATH price.
Overall, the falling wedge pattern indicates a possible trend reversal, especially in case of increased volume.
On-chain metrics support recovery
On-chain data from Coinanalyze shows that Pepe’s open interest (OI) has increased by 9.6% in the last 24 hours. This, coupled with rising prices, signals a bullish sentiment for the Pepe price.
Following the market crash on August 5, there was an increase in the volume of large transactions on Pepe, indicating an increase in whale activity potentially snapping up tokens at a discounted price. This whale activity was the largest in the last month.
Since the market recovery began on August 6, most Pepe holders have returned to profit. Data from IntoTheBlock shows that 57.8% of holders are in profit.
Moreover, if the Pepe price rises and breaks above the 50-day EMA ($0.00001177), 122.12 trillion Pepe tokens, which are currently in the red, will return to profit.
Frequently Asked Questions (FAQs)
Pepe is showing possible signs of a bullish trend reversal with a falling wedge pattern on the daily chart, suggesting a potential 36% increase in the short term.
epe has a temporary support level at $0.0000075. Immediate resistance levels are at $0.00000845 (200-day EMA) and the upper boundary of the wedge is around $0.0000095.
If the falling wedge pattern is confirmed by increased volume, Pepe could not only gain 36% but potentially extend its gains by as much as 48%, approaching its previous all-time high (ATH).
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video games. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes blockchain will revolutionize many industries in the coming years. When he’s not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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