Top 3 Reasons Why Pepe Coin Is Not Dead Yet And Price May Surge Soon

Pepe Coin price trades at $0.00001042 today, June 19, down by over 36% from its highest point in May. It has crashed by over 62% from its all-time high, erasing over $5.7 billion in value. Still, Pepe’s technicals, falling exchange balances, and whale buying signal that it is not dead yet. 

Pepe Coin Price Technical Analysis Signals a Rebound is Coming

The daily timeframe shows that the Pepe Coin price formed a double-bottom pattern at $0.0000057 between March and June. This pattern often leads to a strong bullish breakout, which explains why it jumped to a multi-month high of $0.00001652. 

Pepe price has now pulled back as the crypto market crash intensifies amid fears of a widespread crisis in the Middle East. Technically speaking, this crash is part of the ongoing bull run since the coin seems to be targeting the double-bottom’s neckline at $0.000009257. This price action is known as a break-and-retest pattern and is often a continuation sign.

The ongoing pullback is also part of the formation of the bullish flag pattern. A bullish flag is made up of two parts: a flagpole and a flag. In this case, the flag pole starts at $0.000005741 and ends at $0.00001625, giving it a length of $0.00001050. 

Pepe is now forming the flag section, which is characterized by a falling channel. Therefore, the price target for the coin is estimated by adding the flagpole length and the potential breakout point, which, in this case, is around $0.00001200. This gives it a price target of $0.00002250, up by 116% above the current level. A move above that price will raise the odds of the coin soaring to the all-time high of $0.00002827.

A drop below the support at $0.000009257 will invalidate the bullish Pepe coin price forecast and will risk it crashing to the double-bottom at $0.000005741.

Whales are Buying and Exchange Balances are Falling

The other bullish catalyst for Pepe price is that on-chain data show that whales have started to accumulate it. As the chart below shows, whales have increased their holdings to 7.61 trillion, up from 7.23 trillion on the same period last month. Whale accumulation is often seen as a bullish catalyst for an asset since these investors are highly experienced.

Another data, which is seen clearly in the chart below is that exchange balances have been on a downward trajectory. These balances now stand at 249.19 trillion, down by 2.1% from a month earlier. Falling balances indicate that investors are transferring their tokens from exchanges to self-custody, where they intend to hold them for an extended period.

Pepe Futures Open Interest and Funding Rate

Meanwhile, the futures activity points to more demand and optimism among traders. CoinGlass data shows that the futures open interest has jumped to $537 million, its highest point since June 12, and higher than this week’s low of $457 million. 

Pepe’s funding rate has also remained in the green, a sign that investors in the futures market expect the price to be higher than where it is today. These fundamentals may help to drive the Pepe Coin price higher.

Summary

Pepe Coin price has been in a downward trend in the past few weeks. However, its technicals like the bullish flag pattern and its fundamentals like the funding ratr and open interest signal a rebound is coming.