Pepe Coin Shows Bullish Signs After 6% Weekly Drop

Pepe Coin (PEPE) is currently trading near $0.00009184 following a multi-day correction. However, key technical and on-chain indicators suggest a potential rally for the meme-based token. PEPE is forming a bullish wedge structure, supported by whale accumulation and declining exchange balances, which may indicate a breakout toward the $0.000041 level and beyond.

Technical analysis reveals that Pepe Coin has experienced a 6% drop this week, reaching a low of $0.000009210 on June 26. The daily chart shows a falling wedge pattern, which is known for its bullish outcomes. This pattern spans from the May highs to the current range, featuring two converging downward trendlines. The widest section of the wedge measures approximately $0.0000049. If the breakout point confirms around $0.000009, the short-term target could reach $0.0000139. Further movement could test resistance levels near $0.000024 and $0.00002836, according to Elliott Wave projections.

Solberg Invest has also identified a similar pattern from PEPE’s last explosive rally, with a target price of $0.000041. This price area could align with the 40X narrative based on past cycle trends, suggesting a significant potential upside for the token.

On-chain data indicates increasing whale activity, with whales now holding 7.64 trillion PEPE, up from 7.14 trillion in May. Public wallets have also added over 1 billion PEPE in the past week, signaling renewed long-term positioning. Concurrently, the exchange supply has dropped by 2.73% to 248.2 trillion tokens. This decrease in exchange reserves often precedes a reduction in supply pressure and subsequent price advances.

Open interest in futures has risen above $540 million, reflecting growing interest from larger market players. This, combined with the tightening supply and increasing demand, aligns with previous breakout structures observed in PEPE’s on-chain profile. The overall technical and on-chain indicators suggest a bullish outlook for Pepe Coin, with the potential for a significant rally in the near future.