- PEPE price remains strong above a demand zone which had caused rebounds in earlier patterns.
- More than $19M of PEPE has been removed in trades activity, a significant amount of accumulation.
- The tightening Bollinger Bands and low ADX shows that there is less volatility before the possible breakout.
PEPE price is showing early signs of a possible price breakout. After retesting a well-established support zone, the token now stands above a demand range that has triggered rebounds in the past.
Bitcoin Price Key Support Zone Holds After Brief Correction
PEPE price is positioned above a significant support range of $0.00000913 and $0.00000973. This sector has severally served as a propellant of upwards rally in its symmetrical triangle configuration. The price action has depicted that with each time that the token entered this range, it rebounded with a powerful momentum.
This new retest can be interpreted as a correction, as opposed to breakdown Other indicators such as Directional Movement Index (DMI) and Average Directional Index (ADX) also confirm this. The -DI line that indicates bearish power is poor. ADX is also low indicating an absence of a trend momentum to be studied and strengthens the argument of a shallow correction.
On the one-day chart, Bollinger Bands are converging. This is typically an indication of less volatility prior to a stronger move The recent move closer to supportive levels, along with pressurizing Bollinger Bands indicates that the market is gearing up towards a potential rally. As long as the support zone holds, the route e.g. to greater resistance levels holds.
Source: TradingView
Technical resistance levels to look out for are at $0.00001081, then at $0.00001160 and at $0.00001273. On the upside, a move above these levels on PEPE price would help it hit the target price of $0.00002100. This would mean an increase of 130% off the current levels.
In addition to chart indicators, on-chain exchange statistics favour a bullish thesis. According to CoinGlass data, 19 million PEPE price has been removed into exchanges. The outflows are indicative of accumulation rather than selling. When tokens are transferred out of exchanges and into wallets, this usually lowers selling pressure and decreases the supply.
Source: CoinGlass
The tightening price pattern coupled with this kind of movement is normally seen ahead of significant price shifts. Supply on the exchanges is declining and the demand zone remains steady. This positioning indicates the potential of supply crunch should the purchase pressure heighten
The large holders seem to be setting up a position ahead of a possible breakout. The lower volatility, the substantial support level and outflow on the exchange produce the preconditions of the rally. With the current trends continuing and resistance levels being broken, PEPE price may find itself moving towards the $0.00002100 mark.
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