- PEPE’s price is nearing a key resistance level, and a breakout above $0.0000155 could trigger a 38% rally.
- Whale activity has surged by 750%, signaling strong investor confidence despite overbought RSI levels hinting at a possible correction.
PEPE, the popular crypto memecoin, has been making waves in the market as its price has surged by more than 80% in just the past five days. After breaching several key resistance levels, the token now finds itself nearing a critical price point that could determine its next move. While the memecoin has certainly captured the attention of traders, the question on everyone’s mind is whether PEPE is poised for a breakout or a correction
Whale Activity Soars, Betting on Bullish Momentum
One of the most notable developments surrounding PEPE recently is the surge in whale activity. According to data from IntoTheBlock, transactions between $1 million and $10 million jumped by an astounding 750%. Similarly, transactions between $100,000 and $1 million increased by nearly 178%, signaling strong interest from larger investors. This uptick in whale participation suggests that many are betting on PEPE’s continued upward momentum, despite the token reaching a resistance zone that has historically seen selling pressure.
In addition to this, a whale recently shifted focus from another asset to PEPE. The trader went long on PEPE with a 10x leveraged position, amassing an unrealized profit of $81K, signaling growing confidence in the memecoin’s bullish outlook.
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A Potential 38% Rally?
For PEPE to maintain its bullish trajectory, it needs to break through the $0.0000155 resistance level. If it successfully closes a daily candle above this threshold, technical analysts predict a potential 38% rally, taking the price to the next resistance level at $0.00002140. However, PEPE’s Relative Strength Index (RSI) is currently at an extremely overbought level of 85.40, which could indicate that a price correction might be on the horizon.
Breakout or Correction?
While PEPE’s price action is undeniably bullish, the surge in whale activity and the growing retail participation suggest that the memecoin has the potential to continue its upward movement. However, with the RSI flashing overbought conditions, traders should proceed with caution. If PEPE manages to breach the $0.0000155 resistance and hold its ground, it could be on the verge of a substantial 38% rally. Alternatively, a correction might soon follow, as overbought conditions could trigger a pullback. As always, traders should keep a close eye on the price action to gauge the next steps for PEPE.