Pepe (PEPE) is showing an upward trend after recent market volatility. PEPE rose 2.4% on Thursday to $0.00001161, making it one of the best performing coins in the meme revival. This upward momentum comes at a time when the broader market has suffered huge losses.
Moreover, PEPE’s 24-hour trading volume decreased by 33.36% to $647 million. This decline indicates a decline in market trading and investor participation. The flag pattern appearing on the PEPE price chart may indicate further upward movement since a breakout from this pattern usually results in a continuation of the uptrend.
Technical analysis of PEPE supports the bullish outlook
Through PEPE’s technical analysis, an important pattern has emerged that could lead to further increases. In the past three weeks, PEPE has corrected two downward trend lines, creating a flag formation.
This pattern usually results in a short-term reversal against the trend, enabling bulls to regain strength before the next upward move. In this period, the price of PEPE fell by 40% to $0.00000968 from the initial price of $0.00001725.
However, PEPE was able to hold above the lower trend line of the flag pattern. This flexibility indicates that the price may reverse and possibly break the upper trend line. A successful breakout would confirm the buy signal and open the way for at least a 40-45% advance and test of the previous high at $0.00001725.
Whale activity and market sentiment
Whale activity has also affected the price of PEPE in recent days due to their activity. According to Lookonchain, a major cryptocurrency investor, a whale, transferred about 407.74 billion PEPE tokens to Binance, equivalent to $4.27 million.
This trade was made at breakeven, which means that the whale is completely negative about future price dynamics. However, the overall market perception of PEPE remains very positive with a large number of investors anticipating a significant rise.
Technical analysis is also in line with this bullish sentiment as on-chain data is also indicating the same. The portion of the stable supply controlled by whales has risen to 52%, which could mean that large investors are exerting too much influence on the market. This accumulation can be used as a base for future price increases. Moreover, the number of PEPE whale transactions has increased, which means that major investors are engaged and optimistic in the market.
Key resistance levels and potential reversal
At present, PEPE price is approaching important resistance levels that will determine its future trend. The price recently found resistance at $0.0000124, which is currently a crucial support level. If PEPE price rises above this level, the bearish outlook will be invalidated, and the price could rise to $0.0000152 or even higher by more than 20%.
Moreover, the Stochastic Relative Strength Index (RSI) shows that PEPE is in the oversold zone and therefore may face a price reversal. This technical indicator, increasing whale activity and rising long to short positions also indicate further upward pressure.
However, if the price fails to close above $0.000013 by the end of the week, the consolidation phase may last longer. If the downward pressure continues, PEPE price may continue to fall to the $0.00000903 level or even to the $0.0000076 level.
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