Pepe Coin (PEPE) Lines Up 196% Price Target Amid Market Indecision
NOIDA (CoinChapter.com)— The PEPE coin price has seen notable price action recently, reflecting market volatility. After a brief decline in August, PEPE began to consolidate with relatively flat price movement through early September.
While showing some short-term bullish indicators, traders remain cautious as external factors influence the meme coin’s outlook.
PEPE Funding Rate and Open Interest Analysis
The latest PEPE funding rate data shows a positive shift, with long traders paying shorts, signaling a potential upward bias. The positive funding rate suggests that traders may expect prices to rise. However, despite the apparent bullish sentiment, PEPE’s open interest has remained mostly flat, hovering near $79 million.
Pepe coin OI-weighted funding rate. Source: Coinglass
This lack of substantial increase in open interest reveals that traders may still be wary of entering new positions. While optimism grows, market participants await stronger confirmation before committing more capital.
Flat open interest during positive funding rates can indicate a divergence between sentiment and conviction. It suggests that while hopeful traders are cautious about expanding their positions. A rise in open interest following a shift to positive funding rates would typically confirm a more robust trend.
The absence of such a signal indicates that traders may be seeking more clarity on the token’s price direction.
Pepe coin supply distribution by balance of addresses. Source: Santiment
Additionally, whale activity, reflected by the accumulation patterns of wallets holding over 10 million PEPE tokens, has shown steady growth over recent months. This aligns with the flat open interest, suggesting larger holders may strategically position themselves for future moves.
Meanwhile, smaller holders’ retail participation has slowed, reflecting a more cautious sentiment among smaller investors. The charts show a market in a holding pattern, waiting for stronger triggers to indicate PEPE’s next significant price movement.
However, a technical pattern might decide the direction of PEPE coin price action.
Bullish Setup Could Help Token
The PEPE USD pair price has formed a bullish technical setup called the ‘falling wedge.‘
PEPE USD pair has formed a bullish setup with a 196% upside target. Source: Tradingview
Two converging downward trendlines that connect lower highs and lower lows form the falling wedge, a bullish reversal. The narrowing structure shows that, despite the ongoing downtrend, the bearish momentum is gradually weakening, often preceding an upward breakout.
The key feature of a falling wedge is that the slope of the lower trendline is steeper than that of the upper trendline, indicating that selling pressure is dissipating. When the breakout occurs—typically upward—it signals buyers taking control.
To estimate the potential price target after a breakout, traders measure the vertical distance between the widest points of the wedge and project that range from the breakout point upwards. Increased trading volume during the breakout confirms the strength of the reversal, reinforcing market confidence and the likelihood of success.
According to technical analysis rules, the PEPE USD conversion rate might rally over 196% from its current level to reach the pattern’s projected target of around $0.0000216.
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