Pepe Coin price has staged a strong bull run in the past few weeks, moving from a low of $0.000003647 on December 17 to a high of $0.000007265. It was trading at $0.000006657, giving it a market cap of over $2.8 billion.
Pepe Coin Price Technical Analysis
The 12-hour chart shows that the Pepe price staged a strong rally recently as investors rotated back to meme coins. This rally has now lost momentum as its daily volume plunged by 18.5% to $897 million.
A closer look shows the Pepe Coin price is forming a bullish flag pattern. This pattern consists of a vertical line and a descending channel, resembling a hoisted flag.
The profit target in a bullish flag is first established by measuring the flag’s height. In this case, the height is $0.0000032294. Adding this height to the hypothetical breakout point at $0.000009, which is 35% above the current level.
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The token has moved above the Supertrend indicator and the 50- and 25-period Exponential Moving Averages (EMAs). Remaining above these indicators is a highly bullish sign.
On the flip side, a drop below the key support level at $0.0000060 will invalidate the bullish forecast.
Pepe’s Derivatives Activity is Supportive
Third-party data supports more upside in the near term. According to Nansen, the supply of Pepe tokens in exchanges has been in a strong downward trend in the past few months. Falling exchange supply is a sign that investors are moving their tokens to self-custody, which is a highly bullish sign.
More data shows that whales have been slowly buying the coin. One of these whales is James Wynn, who believes that the coin’s market cap can surge from below $4 billion today to over $60 billion over time.
Meanwhile, derivatives data is bullish on the Pepe token. For example, the weighted funding rate has remained in the green in the past few days. This is important as it means that traders holding long positions are paying a fee to shorts as they expect it to keep rising.
Pepe’s open interest has also rebounded in the past few days. It jumped from a low of $198 million on December 20th to over $454 million today. Also, its volume in the spot market has remained higher in the past few days.
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