PEPE Breaks Falling Wedge Pattern, Targets 1600% Gain

PEPE, a meme coin, has recently demonstrated technical strength by breaking out of a falling wedge pattern. This pattern, which had contained PEPE’s lower highs and lower lows for nearly seven weeks, suggests a potential bullish reversal. The breakout occurred at the start of July and has set its sights on a price target of $0.00001600, which marked the mid-May peak. If the price action continues to hold above the wedge and gains follow through, this target could be reached swiftly in the short term.

The short-term optimism for PEPE is further supported by derivatives data. Open interest, which refers to the total number of outstanding derivative contracts, has increased by 19.37% from the previous session, reaching $559.75 million. Additionally, the 24-hour long/short ratio is 1.0263, and huge shorts got liquidated, amounting to $3.13 million compared to $269.49 longs. This data indicates that more traders are entering the market and taking positions, which can lead to increased liquidity and volatility.

Beyond the short-term breakout, the long-term trend for PEPE remains bullish. The Q2 rally marked a breakout from a long-term descending trendline that had been in place since late 2023. This previous breakout structure resembled a broader wedge formation, suggesting that the current move is part of a much larger bullish shift. Despite heavy selling pressure in mid-May, PEPE never fell below its April lows, signaling a strong defense from bulls. If the token manages to close above $0.00001600 with strong daily candle confirmation, it would further validate the breakout and set the stage for a move toward Q4 2024’s peak of around $0.00002800.

The early July rise is also significant for the long-term uptrend. The number of transactions transferring more than $1 million and $100K metrics were declining since mid-May alongside PEPE price, and more spikes in these metrics would boost PEPE price in the long term. This indicates that whale support and large transactions are playing a crucial role in maintaining the bullish momentum.

In summary, the breakout of PEPE from the falling wedge pattern and the increase in open interest are positive signs for the cryptocurrency. However, it is important to remember that the price target of $0.00001600 is based on technical analysis and is not a guaranteed outcome. Traders and investors should conduct their own research and analysis before making any investment decisions. The long-term trend reversal and strong whale support hint at further upside potential for PEPE, making it an interesting asset to watch in the coming months.