PEPE Breaks Bullish Flag Pattern, Traders Eyes 65% Rally
PEPE, the third largest meme coin in the world, is poised for a massive bull run as it has broken out of a bullish price action pattern. The breakout follows an increase in trader and investor participation over the past few hours.
Traders and Whales Drive PEPE’s Breakout Momentum
According to a recent report from on-chain analytics firm Coinglass, PEPE Open interest (OI) surged 13.56% in the past four hours and 5.6% in the last hour. The growth of OI indicates increased interest among traders in meme coins.
In addition to traders, whales and institutions also appeared to be more active, leading to a significant increase in large transaction volume, the on-chain analytics company reported Enter the neighborhood.
PEPE Technical Analysis and Upcoming Levels
According to technical analysis from CoinPedia, PEPE broke out of a bullish flag and extreme price action pattern on the four-hour time frame. In technical analysis, flag and bar breakouts are considered strong bullish signals, often prompting traders and investors to initiate trades following the breakout.
Based on recent price action and historical momentum, if PEPE manages to close a four-hour candle above the $0.0000222 level, there is a good chance it could surge 65% to $0.000036 levels in the coming days.
However, PEPE’s bullish thesis will only remain valid if the meme coin closes the four-hour candle above the above-mentioned levels, otherwise, it may fail.
Meme coin is currently trading above the 200 exponential moving average (EMA) on both the four-hour and daily time frames. Meanwhile, its relative strength index (RSI) suggests an upward rebound is likely in the coming days.
Current Price Momentum
At press time, PEPE was trading close to $0.000020, with the price surging more than 5.10% in the past 24 hours. During the same period, its trading volume increased by 18%, indicating increased trader participation following the bullish breakout.