Why Pepe Is About To Rally: Analyst
(MENAFN- eTrendy Stock) Analysts from 2Bit crypto believe that the Pepe (PEPE) meme coin is poised for a massive surge in the current cycle and upcoming events.
The analyst highlights Pepe's significant market cap of $60 billion and trading volume of $265 million, as the meme coin recently surpassed Optimism's (OP) market cap momentarily. Despite declining popularity among some sectors, with certain YouTubers suggesting that the meme coin's era may be over, the analyst provides a counter-narrative, emphasizing Pepe's potential for growth based on its current market presence.
His analysis reveals that the meme coin is on the verge of reaching 200,000 holders, coupled with continued large-volume exchange purchases, showcasing a potentially bullish future. The analyst points out that 18 indicators are currently signaling positive growth predictions for Pepe, setting the stage for a pivotal moment in its trajectory. The analyst sees the neutral market sentiment as an opportune time for accumulation.
Further, the upcoming Bitcoin Halving is a critical event that could spur significant inflows and interest in Exchange-Traded Funds (ETFs) stacking, possibly leading to a breakout for the meme coin. He bases his points on Pepe's historical performances with broader cryptocurrency market movements.
Pepe Market Outlook: How Is The Meme Coin Looking Today?
An in-depth analysis shows that the token had recently formed a 'Falling Wedge' pattern. The breakout from this pattern seems to have occurred, with the price now entering an uptrend. The Money Flow Index (MFI) is quite high at 88.29. An MFI above 80 is considered overbought, which could signal a pullback might be forthcoming if the index diverges from the price. On the other hand, the Moving Average Convergence Divergence (MACD) shows a bullish crossover, with the MACD line crossing above the signal line, indicating that upward momentum is increasing. The Average Directional Index (ADX) stands at 30.09, indicating a moderate trend strength.
4-hour PEPE/USDT Chart | Source: TradingView
According to Coinmarketcap stats, the meme coin's market performance shows an increase in market cap by 6.94% and a notable surge in trading volume by 82.71%. Last week, the price of meme coins skyrocketed due to a spike in whale activity. An increase in volume and a price increase is typically a bullish indicator, suggesting strong buyer interest. However, combining the price pattern with the MFI could indicate that while the trend is strong, caution is advisable due to the potential overbought condition.
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