Pepe Coin Price Analysis: Rare Pattern Signals 62% Rally as Open Interest Jumps $74M

Pepe Coin (PEPE) dropped by 3% on June 18 to trade at $0.0000102 as traders continued to abandon risk assets due to growing geopolitical concerns. However, if buyers were to step in now, Pepe Coin price could recover after a rare cup and handle pattern emerged, signaling that a 62% rally could be imminent. Meanwhile, the meme token’s open interest has spiked by $74 million in the last two days, highlighting growing optimism among traders.

Can Pepe Coin Price Surge 62% as Cup & Handle Pattern Emerges

The weekly timeframe reveals the formation of a bullish cup and handle pattern in the Pepe Coin price, which could signal the start of an upward move. This pattern formed after the price of the top meme coin underwent a major downtrend that started in December and cooled down in March.

PEPE attempted to make a recovery in April, but it again faced rejection at the $0.000014 resistance that is now the neckline of this bullish pattern. The rejection led to the formation of the handle’s parallel channel.

This pattern will mature if Pepe Coin price can flip resistance at the descending parallel channel and then rise above $0.000014. If this happens, a 62% rally will commence, and this could push the price of this token to $0.0000227.

The MFI indicator is supportive of this thesis as it tips north while the price is making lows. This bullish divergence shows that buying pressure is building up even during the downtrend depicted in the downward sloping channel.

At the same time, the ADX is showing weakness in the downtrend that commenced in May until now. If bears lose control, it could pave the way for the price of Pepe Coin to recover if buyers start accumulating at lower prices.

The invalidation thesis for this forecast lies in a previous CoinGape analysis that noted that PEPE whales are exiting after netflows dropped by 97%. If whales are not willing to buy when bears are losing control, it could push the price below the channel and invalidate the cup and handle pattern.

PEPE’s Open Interest Adds $74M

The bullish Pepe Coin price prediction highlighted on the weekly timeframe is also made strong by a recent spike in open interest. Data from Coinglass shows that in just 24 hours, open interest increased by $74 million to $530 million.

This increase shows that futures traders continue to bet on PEPE’s price performance despite the ongoing volatile movements. Moreover, on the OKX exchange, the long/short ratio stood at 2.63, indicating that traders remained bullish.

In the last 24 hours, PEPE also had the highest liquidations among meme coins, reaching $4.19 million, while the 1000PEPE contract had $6.77 million in liquidations. Most of the liquidated positions were from long traders and played a role in influencing the 3% decline in PEPE price in the last 24 hours.

In summary, Pepe Coin price is dropping today, continuing the downward trend that started in mid-May. However, an in-depth look into the higher timeframe chart shows that a cup and handle pattern has emerged that could lead to a 62% rally as open interest begins to rise again.