The popular Meme coin PEPE has been preparing for a rally following a consolidation week after a bullish run at about $0.001119.
PEPE, the meme coin that has gained popularity, is on the brink of a potential rally following a week of consolidation. PEPE recently emerged from a bullish flag pattern at the $0.001119 level, a critical intersection of a trendline and essential support. PEPE maintained its support levels following this outburst, followed by a consolidation phase.
The Inverse Head-and-Shoulders (IH&S) is a classic bullish reversal pattern that PEPE also exhibits. Following a breach above the neckline resistance, this pattern frequently serves as a precursor to a price increase. PEPE is currently in the process of forming the right shoulder of this pattern as of late July. The critical resistance level is located at $0.00001320.
A conclusive breakout above this level could precipitate PEPE’s price surge. Analysts anticipate the stock will rise to $0.00002241 by the conclusion of Q3 2024, representing a potential 80% increase from its current value.
Whale Concentration and Profitability
About 79% of PEPE holders are in profit, as recent data from CoinGlass indicates. This figure is based on 218,720 addresses that hold PEPE. This substantial proportion of profitable proprietors has the potential to reduce selling pressure by increasing asset retention.
Furthermore, the concentration of PEPE in sizable holders, such as whales, is significant. 72% of the entire PEPE supply is held by these significant investors, as per IntoTheBlock. This high concentration indicates a strong confidence level in the meme coin, potentially supporting further upward movement and stabilizing its price action.
Capital Flows and Strategic Decisions
Recent data suggests a generally positive trajectory in capital flows. The inflows of the PEPE meme coin have been predominant in the past 24 hours despite a few outflows. This net positive capital flow contributes to the ongoing consolidation and can energize the anticipated rally.
Additionally, the strategic decision made by Nascent, a venture capital firm, has been a substantial development. Nascent recently exchanged its MKR positions for PEPE and LDO tokens, acquiring 141.23 billion PEPE tokens. Nascent’s total PEPE holdings have increased to approximately $7.49 million due to this acquisition, valued at roughly $1.57 million. This increase has resulted in positive sentiment and suggests a significant investment and confidence in the future of PEPE.
Competitive Advantage and Market Position
PEPE’s daily average trading volume surpassed $700 million in 2024, establishing it as the second-largest memecoin after Dogecoin (DOGE). PEPE’s performance has been noteworthy. According to CoinGecko, this volume surpasses that of Shiba Inu (SHIB), presently valued at $257 million.
This year, the number of PEPE holders has increased by 70%. In conjunction with a year-to-date surge of 843%, this growth underscores PEPE’s potential to challenge established competitors such as SHIB and its emerging prominence in the market.
Investors and analysts closely monitor PEPE’s performance to determine whether it can maintain its bullish trajectory as it continues to consolidate and gain momentum.
