- PEPE is testing a key resistance near $0.000008, and a breakout could trigger a 25% rally toward $0.00001.
- However, a recent whale sell-off of 438 billion tokens may add downward pressure, requiring caution from traders.
Pepe (PEPE), the popular memecoin, is approaching a critical resistance level that could determine its next major move. Currently trading around $0.000007, PEPE is testing its descending trendline, a key technical barrier that has held strong since December. If it breaks above this resistance, a significant bullish rally could be on the horizon, potentially pushing the price toward double-digit percentage gains.
PEPE’s Key Resistance and Potential Breakout
PEPE’s price faced rejection near its descending trendline on March 27, leading to an 18.43% decline. This trendline aligns closely with the 50-day Exponential Moving Average (EMA) at approximately $0.000008, making it a crucial resistance zone. However, a 4% recovery on Monday suggests renewed bullish interest, with the price once again testing this critical level on Tuesday.
A confirmed breakout above the trendline and the 50-day EMA would signal a bullish shift, possibly propelling PEPE by 25% to retest its February 14 high of $0.00001.
Technical indicators also support this potential rally. The Relative Strength Index (RSI) on the daily chart currently reads 47 and is trending upwards. If the RSI surpasses the neutral 50 mark, it would indicate fading bearish momentum and reinforce the bullish case.
Also read: How Trump’s Policies Crushed XRP in 2025
Trader Sentiment Supports Bullish Outlook
Market sentiment among traders appears to favor a bullish breakout. Data from Coinglass shows that PEPE’s long-to-short ratio stands at 1.01, the highest level in over a month. A ratio above one suggests that more traders are betting on price appreciation rather than a decline.
This increased bullish sentiment, combined with PEPE’s approach to a critical breakout level, adds weight to the possibility of an upward surge.
Whale Activity Raises Caution
Despite the optimistic technical outlook, traders should remain cautious. On-chain data from Lookonchain reveals that a whale offloaded 438 billion PEPE tokens, worth approximately $3.03 million, on Monday. The large-scale sell-off resulted in a $434,000 loss for the seller but could also exert downward pressure on PEPE’s price, potentially disrupting the bullish momentum.
Conclusion
PEPE’s price action is at a decisive point. If it successfully breaks above the descending trendline and the 50-day EMA, a substantial rally toward $0.00001 could unfold. However, the recent whale sell-off introduces an element of risk, which traders should consider. As bullish sentiment builds, PEPE remains a coin to watch closely in the coming days.
For those tracking PEPE, staying updated on market trends and technical developments will be crucial in navigating this potential breakout scenario.
