The latest rally follows a series of volatile movements that saw PEPE struggling to hold key support levels. However, renewed buying interest, particularly from large investors, has fueled speculation about an extended rally.

Whale Accumulation Sparks Optimism

On-chain data indicate that a crypto whale recently pulled out 492 billion PEPE tokens—worth approximately $3.74 million—out of Binance. Such massive accumulation is usually a sign of belief in the long-term prospects of the asset. This mass buying is a sign that deep-pocketed investors are taking advantage of PEPE’s recent price drops to buy huge positions.

A whale withdrew 492B PEPE ($3.74M) from Binance, while the wallet’s first funder holds 612.30B SHIB ($7.85M) with a $4.125M loss. Source: Onchain Lens via X

Market analysts view this trend as an impetus of potential price appreciation. “Whales accumulating PEPE at this scale indicates strong bullish sentiment,” noted a crypto analyst. “If more investors follow suit, we could see a breakout above key resistance levels.”

Technical Indicators Point to Potential Breakout

Pepe Coin’s price action suggests a bullish formation, with analysts waiting for a breakout of a decreasing wedge pattern. Traditionally, the pattern provides space for an extensive move to the upside.

A breakout above $0.00000760 could send PEPE to $0.00001694–$0.00001900, but failure may trigger a support retest. Source: Salmonmeidy on TradingView

A breakout above the wedge resistance can trigger a rally to $0.000015 in the short term, a 55% gain from current levels. Some estimates put PEPE going up to as high as $0.00002, a whopping 175% gain if buyers’ pressure intensifies.

The Relative Strength Index (RSI) is also on the mend, moving towards neutral levels after lingering near oversold levels for weeks. Additionally, the Moving Average Convergence Divergence (MACD) indicator remains above its signal line, further bolstering bullish sentiment.

Resistance and Support Levels to Watch

While bullish patterns suggest an optimistic outlook, PEPE still faces key resistance levels. The meme coin needs to break through $0.0000080 and $0.00001 in order to keep moving upward. Failure to break through these levels could lead to a temporary consolidation phase.

PEPE’s three-month downtrend raises bullish trend concerns, but a short-term bounce toward key resistance levels is likely. Source: Shakatrade1_618 on TradingView

On the downside, though, the $0.0000070 level remains a significant support level. Dropping below it may indicate new bearish pressure, potentially dragging PEPE down before another recovery bid.

Investor Sentiment: A Mixed Outlook

Even with the recent price surge, PEPE’s total transaction volume over the last 24 hours fell by 7.78%, indicating that investors are being cautious. While some are negative about the long-term value of the meme coin based on overall market skepticism and history, others believe otherwise.

Pepe Coin (PEPE) was trading at around $0.0000077, up 7.23% in the last 24 hours at press time. Source: Brave New Coin

Nevertheless, the Open Interest (OI) in PEPE derivatives has risen by 8.47% to $273.99 million, reflecting increased speculative demand. The rise shows that investors are speculating on more price action, which is responsible for short-term coin volatility.

Looking Ahead: Can PEPE Maintain Its Rally?

Pepe Coin’s recent surge, coupled with whale accumulation and positive technicals, promises well for near-term gains. However, the token’s sustained momentum relies on it breaching key resistance and maintaining the attention of strong buyers.

As investors closely follow its every move, the next several days will determine if PEPE can sustain this rally as a long-term breakout or if resistance will catch it. Investors should observe price behavior and on-chain indicators before taking significant trading action.