PEPE has performed well over the past 24 hours as the market situation has improved slightly. The good news for PEPE investors is that the price of the memecoin is consolidating within the pattern.

A breakout above this level could trigger a massive bull rally.

PEPE is integrating

After a slow week, PEPE’s price has surged by more than 3% in the past 24 hours. At the time of writing, the memecoin is trading at $0.000008678 with a market cap of over $3.6 billion, making it the 24th largest cryptocurrency.

However, despite the recent price increase, only 167.4k PEPE addresses are profitable, accounting for 59% of all PEPE addresses.

Meanwhile, a look at the PEPE price chart by AMBCrypto shows that a descending channel pattern has emerged on the memecoin chart.

The pattern emerged in June, and memecoin has been consolidating within it since then. The recent price increase could see PEPE test the upper resistance of the pattern.

A successful breakout above this level could first see PEPE reclaim $0.0000127. If this level is breached, investors could see PEPE retest the June highs.

However, if the bears take over again, then memecoin might drop to the $0.00000653 support level.

Will the bulls still dominate?

AMBCrypto then checked PEPE’s on-chain data to see if the bulls would remain ahead, which could allow PEPE to break out of the pattern.

According to our analysis of Santiment data, memecoin’s trading volume has declined over the past few days while its price has increased. This is generally considered a bearish trend.

After a massive surge, the weighted sentiment of memecoin has started to decline, indicating that the surrounding bullish sentiment is decreasing.

Additionally, memecoin’s open interest has also declined. Whenever this indicator declines, it indicates a high probability of a trend reversal.

Additionally, data from Coinglass shows that PEPE’s long/short ratio has fallen sharply. This means that there are more short positions than long positions in the market, indicating an increase in bearish sentiment.

The technical indicator Chaikin Money Flow (CMF) is well below the neutral mark.

The relative strength index (RSI) is also trading sideways. Both indicators suggest that memecoin could experience a few more days of downturn.

Nonetheless, the MACD shows the possibility of a bullish crossover for PEPE, which would suggest that prices will continue to rise.