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PEPE price eyes potential 80% rally despite current bearish trend

PEPE price eyes potential 80% rally despite current bearish trend

GrafaGrafa2024/08/19 06:45
By:Mahathir Bayena

PEPE (CRYPTO:PEPE), the popular meme coin, is currently experiencing a bearish trend, influenced by broader market conditions.

However, the cryptocurrency might be on the verge of a significant rally, potentially gaining up to 80% if it validates a bullish descending wedge pattern.

Recently, PEPE’s price decline has led to a substantial portion of its supply becoming unprofitable, with the total profitable supply dropping to a six-month low of 72%.

This decline has caused losses for many investors, particularly as the coin’s price fell from $0.00001000 to $0.00000718.

The Global In/Out of the Money (GIOM) indicator shows that around 123 trillion PEPE tokens, worth approximately $880 million at current prices, have lost profitability during this period.

Investors who bought between $0.00000900 and $0.00001000 are now holding onto losses, but there is potential for recovery.

PEPE’s price is currently stuck in a descending wedge pattern, a formation typically seen as a bullish indicator.

After failing to break through in late July, the coin is now testing the lower trend line of this pattern.

If PEPE breaks out above the upper trend line, it could trigger a rally of nearly 80%, pushing the price to a potential target of $0.00001725, which is its year-to-date high.

However, there is also a risk that the pattern could fail.

If PEPE’s price falls through the lower trend line, it could drop to the support level of $0.00000633 and potentially fall further to $0.00000474, which would invalidate the bullish outlook entirely.

While PEPE is currently under bearish pressure, a successful breakout from the descending wedge pattern could lead to a substantial price rally.

Investors are closely watching for this potential move, which could turn recent losses into significant profits.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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