Pepe (PEPE), the third-largest meme coin in the cryptocurrency market, is gaining significant attention after breaking out of a bullish price action pattern. This breakout follows over three weeks of consolidation, signaling a potential shift in momentum.
Technical Analysis and Key Levels
According to CoinPedia’s analysis, PEPE has completed a bullish flag-and-pole pattern, closing a robust daily candle above the pole. This breakout has fueled optimism among traders and investors, suggesting a possible 45% surge in price toward the $0.000036 level.
Currently, PEPE’s Relative Strength Index (RSI) is at 61, well below the overbought threshold of 70. This indicates room for further upward movement, potentially driving PEPE to new all-time highs in the near future.
Bullish On-Chain Metrics
1. Exchange Outflows
Data from Coinglass reveals a significant outflow of $9.10 million in PEPE from exchanges since the breakout. Such outflows, which involve transferring assets from exchanges to private wallets, are often interpreted as bullish signals. They reduce selling pressure and indicate a potential long-term holding trend.
2. Rising Open Interest
Open interest (OI) for PEPE has increased by 40%, highlighting heightened trader activity and new position formations. This surge in participation reflects growing confidence in PEPE’s potential upward trajectory.
Market Momentum and Current Price
As of now, PEPE is trading near $0.000025, reflecting a 16% price increase in the last 24 hours. Trading volume has also risen sharply by 110%, driven by renewed investor interest following the breakout.
Conclusion
PEPE’s breakout from its bullish pattern, coupled with strong on-chain metrics and rising market activity, suggests a favorable outlook for December 2024. With the RSI and exchange outflow data supporting a continued rally, PEPE could potentially reach $0.000036 or higher, setting new records in the process. However, as with all cryptocurrencies, market volatility remains a key factor to monitor.