PEPE Price Gears Up for a Potential Bullish Breakout

Pepe (PEPE) is trading above the $0.000007 mark as of Tuesday, showing signs of approaching a critical descending trendline.

The price of Pepe (PEPE) is approaching a critical descending trendline, and crypto analyst Manish Chhetri says a breakout could signal the start of an uptrend.

At the time of writing, PEPE is trading above the $0.000007 mark. It appears to be nearing the descending trendline, which closely aligns with the 50-day Exponential Moving Average (EMA) at around $0.000008. A breakout from this trendline could be crucial for the next leg of the meme coin’s price movement.

After encountering rejection at the descending trendline on March 27, PEPE's price has decreased by 18.43% as of Sunday. A breakout from this trendline could shift the current market dynamics.

However, on Monday, the coin recovered by around 4%, placing it in close proximity to the descending trendline.

If PEPE manages to break through the descending trendline and close above its 50-day EMA, it could indicate a bullish pattern, which might propel PEPE's price from $0.000008 to revisit its high of $0.00001 from February 14, suggesting a potential 25% hike.

Relative Strength Index Shows Decreasing Bearish Momentum

The Relative Strength Index (RSI) on the daily chart is moving towards the neutral mark of 50 from the lower levels, currently valued at 47. This indicates a decreasing strength in the bearish momentum. For a sustained bullish trend, the RSI needs to cross its neutral threshold at 50 to signal a recovery rally.

Moreover, data from Coinglass shows that the long-short ratio for PEPE has reached a one-month high of 1.01, indicating a bullish sentiment as more traders are placing bullish positions on the meme coin. This ratio going above one highlights the prevailing optimistic trend in the market.

PEPE Long-Short Ratio Chart. Source: Coinglass

If we look at the standard deviation, it’s currently at +2.44, which is relatively high and suggests that recent price moves have been significant compared to the typical price fluctuations over the past 15 days. This could indicate strong volatility and rapid price changes, which aligns with the large price fluctuations observed in March.

PEPE traders are entering April with a surprising statistic: bullish positions have reached a one-month peak. In the past 24 hours, as of Monday, traders have opened twice as many "net" bullish positions than short positions on major crypto exchange Huobi. This finding is especially interesting given the strong recovery of crypto prices in recent days.

Potential Risk: Large PEPE Whale Takes Profit, Incurring Small Loss

Despite the positive indicators, Lookonchain reported that a PEPE whale offloaded 3.03 billion PEPE tokens, valued at $438 million, on Monday, resulting in a small loss of $434,000.

This massive sale could exert downward pressure on PEPE, potentially affecting the bullish thesis and leading to a price decrease. Investors are advised to exercise caution regarding this development.