Pepe [PEPE], the world’s third-largest memecoin by market cap, is poised for upside momentum as it has formed a bullish price action pattern on the daily time frame.
The overall cryptocurrency market cap appears uncertain, with top assets like Bitcoin[BTC], Ethereum [ETH], and Ripple[XRP] gaining notable upside momentum, while others continue to struggle.
Amid the uncertain cryptocurrency market, PEPE appears promising as it has gained notable attention from crypto investors and whales, hinting at a potential upside rally.
In addition to rising investor interest, the memecoin’s bullish outlook is further supported by on-chain metrics and price action.
PEPE’s bullish on-chain metrics
Data from the on-chain analytics firm Coinglass’s PEPE Spot Inflow/Outflow metrics revealed that exchanges have witnessed a significant outflow of $15 million worth of PEPE over the past two trading days.
In the cryptocurrency context, “outflow” refers to the movement of assets from exchanges to wallet addresses, which indicates potential upside momentum and suggests an ideal buying opportunity.
However, the outflow metrics mainly consider the participation of long-term holders, whales, and investors. In addition, traders on Binance have shown strong interest in the memecoin. Currently, Binance’s PEPEUSDT Long/Short Ratio stands at 4.15, indicating significant interest among traders.
Currently, 80.57% of top Binance traders hold long positions, while 19.43% hold short positions.
Technical analysis and key levels
According to AMBCrypto’s technical analysis, PEPE has formed a descending triangle pattern on the four-hour time frame and is on the verge of a breakout. If PEPE breaks out of the pattern and closes a four-hour candle above the $0.0000243 level, there is a strong possibility it could soar by 17% to reach $0.000028.
On the positive side, PEPE’s Relative Strength Index (RSI) is still below the overbought area, indicating the asset has room for an upside rally.
Combining these on-chain metrics, it appears that bulls, including traders and long-term holders, are currently dominating the memecoin. This could support a breakout from the pattern and propel the memecoin by 17% in the coming days.
Currently, PEPE is trading near $0.0000235, having experienced a price surge of over 1.5% in the past 24 hours.
During the same period, its trading volume increased by 15%, indicating heightened participation from traders and investors amid PEPE’s bullish outlook.
