What traders should focus on
PEPE shows growth potential with bullish indicators, whale activity, and adoption.
Pepe［PEPE］ has become a memecoin with great growth potential in the fourth quarter of 2024. After a consolidation phase, PEPE experienced an amazing surge of more than 1000%, attracting widespread attention.
PEPE/USDT is now forming a triangle pattern after initially being caught in a sideways market following its launch on the Ethereum blockchain.
This consolidation, coupled with the tightening Bollinger Bands, suggests that a breakout could be imminent. With the historical trend supporting, traders are positioning for a potentially bullish end of the year.
It is currently consolidating inside a triangle pattern with the Bollinger Bands tightening. This pattern usually signals a near-term breakout.
Historical data shows that this setup often precedes significant price moves.
The Chaikin Money Flow has also broken out of the wedge pattern, suggesting that the accumulation phase is about to end.
As CMF rises, buying pressure increases, indicating that memecoin could experience a major uptick.
The long period of consolidation since May further supports the potential for a strong rally if market conditions favor altcoins
Pepe financing rate turns green
The funding rate has turned green, providing further support for the bullish outlook for Pepe memecoin.
When the funding rate is green, it indicates that more traders are long, reflecting positive sentiment.
This situation means that long traders are paying short traders to keep their positions open. This trend usually leads to increased demand for an asset and higher prices.
However, it also increases the risk of long positions being liquidated if the market changes.
Address holdings and whales
Analyzing addresses by USD holdings shows that whales continue to increase their positions. Traders holding more than $10 million worth of PEPE increased by 5.26%.
While retail traders with smaller positions are also increasing, there is a slight decrease in mid-sized traders.
Nonetheless, continued active buying by whales suggests confidence in PEPE’s potential.
New adoption rate
Pepe’s new adoption rate is 26%, reflecting a steady trend with no decline. This steady adoption rate suggests that more traders are getting involved, albeit not as fast as some enthusiasts would like.
