PEPE Price Gears Up for a Potential Bullish Breakout
Pepe (PEPE) is trading above the $0.000007 mark as of Tuesday, showing signs of approaching a critical descending trendline. Crypto analyst Manish Chhetri suggests that a breakout could signal a bullish trend for the meme coin. The long-short ratio for PEPE, along with a rise in bullish positions among traders to a one-month high, supports this optimistic outlook. Chhetri anticipates potential double-digit gains for PEPE.
PEPE Prepares for a Possible Uptrend
Since encountering a rejection around its descending trendline on March 27, PEPE’s price has decreased by 18.43% as of Sunday. This trendline aligns closely with the 50-day Exponential Moving Average (EMA) at approximately $0.000008, marking it as a significant resistance zone. A breakout in favor of the bulls could change the current market dynamics. Notably, on Monday, the coin recovered by around 4%, bringing it close to the descending trendline as of Tuesday.
If PEPE manages to break through the descending trendline and close above its 50-day EMA, it could indicate a bullish pattern. This breakthrough might propel PEPE’s price from $0.000008 to revisit its high of $0.00001 from February 14, suggesting a potential 25% hike.
PEPE/USDT Daily Chart Analysis
Indicators Point Towards a Rise
The Relative Strength Index (RSI) on the daily chart is trending upwards towards the neutral mark of 50, currently showing a value of 47. This suggests a decline in bearish momentum. For the bullish trend to sustain, the RSI needs to cross above its neutral threshold to reinforce a recovery rally.
Additionally, Coinglass’ data reveals that PEPE’s long-short ratio has reached a one-month high of 1.01, indicating a bullish sentiment as more traders anticipate a price increase for the meme coin. This ratio surpassing one highlights the prevailing optimistic trend in the market.
PEPE Long-Short Ratio Chart. Source: Coinglass
Potential Risks: Whale Activity
Despite the positive indicators, Lookonchain data reported that a whale offloaded 3.03 billion PEPE tokens valued at $438 million on Monday, incurring a loss of $434,000. Such a significant sale could exert downward pressure on PEPE, potentially counteracting the bullish thesis and leading to a price drop. Investors are advised to remain cautious.
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