🐸 Pepe (#PEPE ) Breaks Above Descending Channel, Poised for More Gains
On Tuesday, Pepe’s (PEPE) price rose by 11% following its listing on South Korea’s largest cryptocurrency exchange, Upbit. This rally caused its price to break above a descending channel it has traded within since August 6.
Exchanging hands at $0.0000078 at press time, some of PEPE’s technical indicators suggest that the meme coin is primed for more growth.
🔸 Pepe is Ready for More
Following the general market downturn of August 5, PEPE has been in a downtrend that led to the formation of a descending channel. This bearish pattern appears when an asset’s price consistently moves lower, creating a series of lower highs and lower lows.
The upper line of the channel acts as resistance, currently at $0.0000090 for PEPE. Conversely, the lower line, set at $0.0000065, serves as support.
After listing on Upbit on Tuesday, PEPE’s double-digit rally briefly pushed it above resistance. Although it has since witnessed a pullback, the meme coin is attempting to retest resistance.
When an asset’s price breaks above a descending channel, it confirms the reversal of any downtrend in the market. It indicates that selling pressure is weakening and that buyers are gaining control.
In addition to seeking to break above the upper line of its descending channel, PEPE is also trending towards its 20-day exponential moving average (EMA), which measures the meme coin’s average trading price over the past 20 trading days.
🔸 PEPE’s Price Prediction: a Buying Opportunity Abounds
On-chain data suggests that PEPE remains undervalued and may be a good buy for those looking to gain from the potential rally. This is based on assessing the token’s market value to realized value (MVRV) ratio over different moving averages.
According to Santiment, the token’s 30-day and 90-day MVRV ratios are -6.94% and -23.71% respectively.
An asset’s MVRV measures the ratio between its current market price and the average price of its tokens in circulation.
