Pepe, the largest frog-themed meme coin, leaps back into action and targets $0.000010 with the potential for a falling wedge breakout rally.
With the short-term recovery in the meme coin market, Pepe is making a bullish comeback. After creating three consecutive bullish candles, the recovery run hints at a potential breakout rally.
Challenging immediate dynamic resistance, Pepe is on the verge of starting a new V-shaped recovery. Will this propel Pepe prices to the $0.000010 psychological mark?
Pepe Eyes Recovery With Wedge Breakout Rally
Pepe’s price action in the daily chart reveals a declining trend under the influence of the 20-day EMA line. Additionally, the price action shows a falling wedge pattern.
The downfall finds support near the $0.0000052 level, creating a morning star pattern, which marks a new bullish reversal within the falling wedge.
The bullish trend continues with three green candles, forming a triple white soldier pattern. Currently, Pepe is challenging the 20-day EMA line and the overhead resistance trendline.
With newfound momentum, technical indicators support the possibility of a breakout rally. The MACD and signal lines have shown a positive crossover, accompanied by a surge in bullish histograms.
However, due to the prevailing downtrend, the 100-day and 200-day EMA lines have crossed negatively. This results in a complete bearish alignment of the 20, 50, 100, and 200-day EMA lines.
Whales Buying Spree
Earlier this week, three wallets purchased a total of 689.79 billion Pepe tokens, worth $4.3 million. These crypto-wallets saw inflows from Tornado Cash.
The recovery in Pepe prices aligns with these anonymous wallets accumulating significant amounts of Pepe, which hints at the possibility of insider trading.
3 wallets bought 689.79B $PEPE($4.3M) ~11 hours ago.
The funds of these 3 wallets all come from #TornadoCash.
0x7A7D spent 1,413.4 $ETH($2.72M) to buy 437.7B $PEPE.
0x9212 spent $1M to buy 158.58B $PEPE.
0x7779 spent 299 $ETH($574K) to buy 93.51B $PEPE.
Address:… pic.twitter.com/rhFpg3X8wv
— Lookonchain (@lookonchain) March 12, 2025
PEPE Derivatives Signals Mild Bullish Chances
Amid the bullish recovery, trader participation in Pepe futures contracts has seen a significant rise. Open interest has increased by 7.57%, reaching $216.73 million. However, the funding rate is close to 0%.
This indicates that the cost of holding positions in perpetual futures is extremely low.
Nevertheless, the long-to-short ratio of 1.04 suggests a slightly higher number of long positions, but not by a significant margin. Overall, the data from Pepe derivatives signals slight bullish dominance.
Will Pepe Bounce Back to $0.000010?
Based on price action analysis, the possibility of a falling wedge breakout rally is highly likely. According to Fibonacci levels, the breakout rally is expected to target the 23.60% Fibonacci level, close to the $0.000010 psychological mark.
Furthermore, the dynamic average lines also suggest the possibility of Pepe reaching the 50-day EMA near the $0.000010 psychological mark.
On the flip side, crucial support for Pepe remains at the $0.0000050 psychological mark, near the local support trendline.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
