Key Insights:
- Pepe (PEPE) coin seems to be struggling at a descending trendline with a strong history of selling pressure.
- The daily chart and on-chain metrics flash a buy signal if the meme coin breaks out from the trendline.
- A breakout above the $0.00000775 resistance could trigger a 20% price increase.
PEPE Coin, the third-largest meme coin, has shown signs of potential recovery after a prolonged bearish trend. Technical and on-chain data suggested a possible 20% price rally. This potential surge hinged on the meme coin breaking through its current resistance level.
PEPE Coin Consolidation Amid Tariff War Impacts and Market Dynamics
The tariff wars between the United States and other countries potentially caused this bearishness and the decline in value. President Donald Trump’s decision to pause the tariff war for 90 days led to a notable market pullback.
However, recovery remains challenging as the markets grapple with the broader implications of the trade tensions. During the price recovery, PEPE coin reached the upper boundary of the channel pattern. The token is now consolidating at that level.
This ongoing consolidation has been gaining massive attention from crypto enthusiasts. Some see it as an area of accumulation, while others view it as a distribution.
PEPE Coin Price Prediction, Current Momentum, and Market Sentiment
Based on the daily chart, PEPE coin may break out of the channel pattern and close a daily candle above the $0.00000775 level. This could partially open the path for an uptrend, or a 20% upside move until it reaches the next resistance level.
If the current sentiment shifts, the meme coin may struggle to break the upper boundary. Failure to overcome this resistance could halt further upward momentum.
In that case, the token could drop by 18% until it reaches the crucial support level of $0.00000593. At press time, PEPE coin was trading at nearly $0.000007345. It had recorded a price surge of over 4% in the past 24 hours.
During the same period, its trading volume jumped by 10%. This indicated higher participation from traders and investors than the previous day.
This surge in trading volume highlighted growing interest from traders and investors. This happened as the price approached the resistance level, which may signify a potential breakout.
Bullish On-Chain Metrics
Recent market sentiment and PEPE coin’s proximity to the resistance level have significantly increased traders’ long positions. This trend was highlighted by the on-chain analytics firm Coinglass.
PEPE’s Long/Short ratio at press time stood at 1.0239, indicating strong bullish sentiment among traders. Whenever an asset’s Long/Short ratio rises above 1, it signals bullish sentiment. This suggests that the number of traders betting on the long side is higher than on the short side.
Alongside bullish trading activity, the spot inflow/outflow metric shows significant outflows of the meme coin. Exchanges have consistently observed this trend. The outflows began when PEPE coin started consolidating near the upper boundary of the descending channel pattern.
Data revealed that exchanges have witnessed an outflow of $20.14 million worth of PEPE meme coin over the past three days. This substantial outflow indicates potential accumulation, which could create buying pressure and lead to a further upside rally.
When combining these on-chain metrics with technical analysis, the bulls are back in action and currently dominating the meme coin.
With a bullish Long/Short ratio and significant exchange outflows, PEPE coin appears poised for potential upside. However, traders should monitor the resistance level for confirmation of the breakout.