- Bullish Falling Wedge Pattern: PEPE could rally 30% if support near $0.00001446 holds.
- 200 EMA Support: Retest of 200 EMA signals potential upward momentum, aided by RSI.
- Leveraged Trader Positions: $2.62M in longs vs. $3.73M in shorts sets up liquidation risks.
Pepe ($PEPE), the beloved crypto memecoin, has taken a beating since December 2024, tumbling over 45% in value. It’s struggling, and the current market conditions aren’t helping—big players like Bitcoin ($BTC) and Ethereum ($ETH) are also in a rough patch, weighing down broader sentiment.
However, if you look closely at the charts and on-chain metrics, there’s a flicker of hope. PEPE’s downtrend might just be inching toward a reversal.
Could PEPE Make a Comeback?
Technical analysis suggests that while PEPE has been on a relentless slide, a bullish falling wedge pattern has formed on the daily timeframe. Now, if you’re unfamiliar, a falling wedge is a bit like a descending channel, except the “walls” narrow as time passes.
At press time, PEPE was perched at the lower boundary of this wedge—a spot where, historically, it’s managed to stage some impressive comebacks. Fun fact: since December, PEPE has hit this boundary four times, and each time, it’s bounced back with solid upward momentum.
If it can hold this crucial support, there’s a decent chance PEPE might rally by as much as 30%, possibly hitting the $0.000019 level in the days ahead.
The Factors Strengthening PEPE
But here’s the kicker: it’s not just the wedge pattern bolstering PEPE’s chances. The 200-day Exponential Moving Average (EMA) is sitting right at this level too. The 200 EMA is like a guardian angel for any asset—it’s a strong indicator of long-term trends.
A retest of the 200 EMA is generally seen as a bullish signal, suggesting an uptrend is intact. Add to that the Relative Strength Index (RSI), which is hovering dangerously close to the oversold zone. Translation? PEPE could be gearing up for some upward momentum soon.
Mixed Sentiment From On-Chain Data
When it comes to on-chain metrics, the picture is a bit murky. Long-term holders seem to be sticking with PEPE, showing strong confidence in the memecoin, according to Coinglass.
Exchange data shows a net outflow of $161.36 million worth of PEPE over the past six days—a sign that investors might be withdrawing their holdings, which could reduce selling pressure and nudge prices upward.
Interestingly, traders are piling into leveraged positions. At the $0.00001446 level, buyers have built up $2.62 million worth of long positions, while sellers are defending $0.00001542 with $3.73 million in shorts. This imbalance suggests short-term sentiment is leaning bearish, but a sudden price movement in either direction could cause massive liquidations.
Current Price Action
Right now, PEPE is trading at $0.00001494, down 4.50% over the past 24 hours. The decline has scared off some market participants, causing trading volume to plummet by 35%.
It’s clear the memecoin is in a precarious position. While the falling wedge and technical indicators hint at a potential bounce, bearish sentiment and broader market conditions continue to weigh heavily. The next few days will be crucial for PEPE’s trajectory.
