Pepe Coin has faced renewed selling pressure as its price declined for the second consecutive day, reflecting waning momentum across the broader cryptocurrency market. On June 26, the coin experienced a 6% dip, hitting a low of $0.000009210. This latest decline brings the token’s total drop to approximately 43% from its recent peak in May. Despite this bearish streak, technical indicators and shifting investor behavior suggest that Pepe Coin could be gearing up for a substantial rebound, potentially rallying up to 70% in the near term.
One of the primary technical patterns analysts are watching is the formation of a “falling wedge” on Pepe’s daily price chart. Falling wedges are typically considered bullish reversal patterns, often signaling that selling momentum is waning and a breakout to the upside may be imminent. This particular pattern is characterized by two downward-sloping trendlines that gradually converge. In Pepe Coin’s case, the upper trendline has been tracing a series of lower highs since May 23, while the lower trendline has connected descending lows dating back to May 11. As these lines draw closer, the probability of a breakout grows stronger.
To estimate the potential magnitude of such a breakout, technical analysts measure the height of the wedge at its widest point. For Pepe Coin, this distance spans from $0.00001625 to $0.00001135, totaling a spread of $0.0000049. Adding this figure to the projected breakout level around $0.000009, provides a possible price target of $0.0000139. This would represent a gain of about 50% from the current price.
However, it’s important to note that any move below the week’s low of $0.000008320 could invalidate this bullish scenario. Such a breakdown would signal a resurgence in bearish sentiment, with the possibility of a continued decline to the yearly low of $0.000005740.
Outside of chart patterns, another strong argument for an impending price jump lies in blockchain activity—specifically, growing accumulation by large holders, commonly known as “whales.” These investors, typically known for their informed trading decisions and long-term perspectives, have significantly increased their Pepe Coin holdings in recent weeks.
Data reveals that whale wallets now control approximately 7.64 trillion Pepe Coins, an increase from 7.14 trillion coins held in May. This marks a near 6% growth in holdings over that period, indicating heightened confidence among major players. Additionally, prominent public addresses associated with influential investors have shown increased accumulation, with their holdings rising from 273 billion coins on June 23 to 274.37 billion coins currently.
Perhaps even more telling is the shift in exchange wallet balances. Over the past month, the total supply of Pepe Coins held on exchanges has decreased by more than 2.73%, down to 248.2 trillion. A decline in exchange-held tokens often points to reduced selling pressure, as investors are more likely to transfer coins to private wallets for long-term holding rather than keeping them readily available for trading. In the crypto world, declining exchange reserves are typically interpreted as a bullish signal, as they suggest supply is becoming more constrained.
While the price of Pepe Coin has clearly struggled throughout June, current technical and on-chain indicators paint a more optimistic picture. The development of a bullish falling wedge, combined with evident whale accumulation and falling exchange reserves, points to the potential for a meaningful recovery. These signals could indicate that the market is in the final phase of its downward correction and may soon pivot to the upside.
In summary, although Pepe Coin’s recent price action has been discouraging to some investors, several key metrics suggest that a rebound may be on the horizon. The falling wedge pattern, one of the more reliable bullish formations, supports the idea of a sharp move higher. When coupled with sustained whale activity and shrinking token availability on exchanges, the stage appears to be set for a significant upward move, one that could see Pepe Coin recapture its earlier gains and possibly climb 70% or more if the technical breakout materializes.
It’s important to note that cryptocurrency remains an unregulated digital asset, not recognized as legal tender, and is subject to market risks. The information provided should not be considered financial or trading advice. CryptoNow holds no responsibility for any investment decisions made based on the content of this article.
