Pepe coin price has suffered a harsh reversal in the past few months, erasing some of the gains made earlier this year when it surged to a record high. It has crashed from an all-time high of $0.00002827 in January to $0.00001. These are the top three reasons why the Pepe price may surge soon.
Pepe coin price has bullish technicals
The daily chart paints a picture where the Pepe price may be under intense pressure and continue its bearish trend. Besides, there are signs that it is about to form a death cross as the 200-day and 50-day exponential moving averages (EMA) are about to cross each other. This death cross is one of the most bearish patterns in the market.
However, the chart also shows several bullish catalysts that may push the price much higher soon. First, the two lines of the MACD indicator have formed a bullish crossover, a sign that a bullish divergence may happen soon.
Similarly, the Relative Strength Index (RSI) has pointed upwards and has crossed the descending trendline that connects the highest swings since November last year. Again, that is a sign that the token is forming a bullish divergence pattern, which will be highly positive.
Third, and most importantly, the Pepe price has formed a falling wedge pattern, which is characterized by descending converging trendlines. The upper side of the wedge connects the highest swings since January, while the lower one links the lowest points since December.
These two trendlines are now about to converge, pointing to a strong rebound. Besides, the wedge is one of the most bullish patterns in technical analysis.
Another technical aspect is that Pepe coin’s short-term market value to realized value (MVRV) indicator has moved to the red zone. The last time it moved to that zone was in October last year and the token exploded higher since then.
Pepe holders are not selling
Ideally, you would expect that a coin’s holders, especially retail traders will sell it when it loses half of its value in two months. In Pepe’s case, onchain data shows that these holders are not selling.
Indeed, the number of Pepe holders has continued rising, as shown in the chart below. There are now 404,263 holders, a big increase from 384,000 in the same period last month. That is a sign that the token is going through an accumulation phase, which is then followed by a strong rebound.
Read more: PEPE price forecast: whales accumulate over 480B tokens after recent dips
Falling open interest and high volume
Meanwhile, Pepe is still one of the most popular meme coins in the industry, and volume data shows that it still attracts demand. Pepe had a volum of $366 million on Monday morning, which is understandable since the volume figure often drops during the weekend. This volume was much higher than Shiba Inu’s $142 million. It was only third to Official Trump and Dogecoin.
Pepe coin has also seen its futures open interest stabilize in the past few months, after dropping from $556 million in January to $257 million today. Falling futures open interest is a contrarian catalyst for buying an asset. For example, Pepe’s open interest plunged to $144 million in December last year, leading to a strong rebound to a record high.
Keep in mind that Pepe coin price has always had “pumps” and “dumps” since its launch. For example, it crashed by 65% between May and August 2024, and then it rebounded sharply and reached a record high in January this year. That is a sign that the coin will stage a strong rebound after this retracement ends.
The post Pepe coin price prediction: 3 reasons this meme coin will surge appeared first on Invezz
