Pepe Coin (PEPE) has been in the limelight in the recent days owing to its shifts in the market and it might touch new highs in the next few weeks. Now changing hands at$0.000007583, the frog-themed meme coin is also showing strong indications of a price bounce especially if it holds above crucial support levels. The market signals suggest that it may be in the process of staging a comeback that could see the cryptocurrency reclaim part of its lost ground.
Source: CoinMarketCap
On-Chain Data Suggests Market Shift
According to on-chain data, PEPE is set to rise as the MVRV Long/Short Difference has seen a positive shift. Santiment data shows that MVRV Long/Short Difference rose from 36% at the end of August to 39.87% at the beginning of September. This change shows that the long-term holders are now starting to make more gains and this may be the beginning of another bullish phase.
The rise in this metric aligns with the idea that the market could be moving from a bear market to a bull market, which could be positive for PEPE.
According to Santiment, the social dominance of PEPE has dropped to the levels that are usually followed by the price rise. In the past, a decline in social dominance after having high levels of discussion often precedes a local bottom in prices, which are then followed by a rebound. If this pattern remains constant, then PEPE could be due for an increase in its price. The relationship between social dominance and price indicates that the cryptocurrency might experience a rise in the buying pressure if the current trend is to be sustained.
PEPE Critical Support Levels and Price Targets
The probability of PEPE rising or falling in September depends on whether it will be able to remain above $0.0000070. If it can hold this level, the coin could look to move to even higher levels with $0.0000087 or even $0.000010 possible.
Historical data shows that falling below the $0.0000070 threshold has previously led to declines towards the $0.0000063 range. However, breaking above this level could set the stage for further gains.
The daily chart also shows that the price of PEPE has recently emerged from the descending triangle pattern, which is a bullish formation. This breakout, coupled with the increase in buying pressure, can push the price towards $0.000010 resistance level. However, if the price of PEPE does not hold above the $0.0000070 level, it may retest the $0.0000063 support level and potentially deny the current bullish outlook.
Whale Activity and Market Impact
Besides the technical indicators, the whale activity has also affected the prices of PEPE in the last few days. A big transfer noted a whale with the PEPE token address withdrawing 292.97 billion tokens from Binance which is equal to $2.17 million.
Someone created a new wallet and withdrew 292.97B $PEPE($2.17M) and 273,267 $WLD($391K) from #Binance in the past 20 minutes.https://t.co/6fN9VpX6TX pic.twitter.com/1vvsjxP4oQ
— Lookonchain (@lookonchain) September 2, 2024
This withdrawal is considered as bullish as big outflows from exchanges are seen as an indication that investors are setting up to keep their coins for more extended periods instead of trading them. Such movements may create a bullish sentiment in the market which will lead to price increase.
However, the market remains cautious, with PEPE still trading within a descending channel. The key resistance level, aligned with the 0.618 Fibonacci retracement at $0.00000875, remains a critical barrier. A break above this level could signal the end of the current downtrend and lead to higher price targets.
