Whales are showing increased interest in PEPE, which could be a prelude to an imminent rally.
In a significant move, a whale has moved over $29 million worth of PEPE into a private wallet.
This trade is in line with PEPE bounce from the support level of the bullish symmetrical pattern.
Despite enduring a prolonged downtrend on both the monthly and daily charts, Pepe [PEPE] managed to post a modest gain of 0.94% over the past week.
Market trends now suggest that memecoin is poised to rally, aiming to revisit its May peak at $0.00001725 and possibly climb higher as key factors align.
Whales' actions bring hope to PEPE
A recent report from Lookonchain revealed that in a large transaction, a whale — defined as an investor holding a large number of tokens — moved 4 billion PEPE, worth an approximate $29,868,000, from the centralized exchange Bybit to a private wallet.
Such moves, from centralized exchanges to private wallets, generally indicate that investors are gaining confidence in the asset, which could put pressure on supply.
A supply crunch occurs when the available supply of a cryptocurrency becomes limited, often leading to price increases if demand continues unabated, as buyers compete for a shrinking pool of available coins.
Despite this bullish activity, the immediate impact on PEPE price was muted, with a 3.93% decline in daily candlestick action. However, AMBCrypto suggests that a rally could be on the horizon.
Golden cross and symmetrical pattern put PEPE in positive position
PEPE is currently trading inside an ascending symmetrical triangle, a pattern characterized by the convergence of diagonal support and resistance lines that create a sloping structure.
In this formation, prices typically fluctuate within these levels until a breakout occurs near the convergence point.
PEPE stock has now reached this critical stage, after bouncing off the lower support line - the main catalyst for the move. This bounce closely coincides with the convergence point.
In case of a breakout, PEPE is set to revisit its peak at the pattern’s top, which was recorded in May at $0.00001725, with the potential for higher gains.
Source Trading View
Moreover, the Moving Average Convergence Divergence (MACD) indicator is an effective tool in identifying the turning point of an asset by providing potential buy and sell signals to traders based on the strength of the price trend, indicating that PEPE may rise soon.
A bullish crossover becomes apparent when the MACD line (blue) intersects the signal line (yellow), accompanied by an increase in volume – a scenario that memecoin recently mirrored, paving the way for a potential rally.
Increased open interest in PEPE suggests potential for new highs
Open interest in PEPE, a key indicator of retail trader activity, has seen a significant increase, reflecting the ongoing momentum trend with current figures at $91.16 million according to Coinglass.
