PEPE Price Prediction: Is $0.000020 Within Reach After Wedge Breakout?

Key Insights:

• Falling wedge breakout suggests PEPE price may rally toward $0.000020 soon.
• Whale dumped 531B PEPE at a $460K loss, signaling local bottom zone.
• Derivatives volume hits $2.04B as open interest drops 14%, clearing weak hands.

PEPE price is showing early signs of a bullish trend reversal after breaking out from a falling wedge formation. A fresh whale-sellers sell-off, a massive increase in the derivatives volume, and a long-term technical channel all indicate a fresh surge in momentum.

Analysts are currently monitoring if the meme coin price can regain important resistance levels on its march towards 0.000020.

PEPE Price Breaks Out of Wedge Pattern

PEPE price recently broke out of a 12-hour falling wedge pattern, a technical setup often associated with bullish reversals. According to analyst Steph Is Crypto, the chart on KuCoin showed PEPE price rebounding sharply from a lower trendline that previously acted as resistance. This breakout resembles those in April and May, all of which resulted in rallies above 25%.

Notably, the current setup sees PEPE price consolidating above $0.00000950. Relating to Steph, a bull run beyond the $0.00001050 is capable of an impulsive surge up to the mark of $0.000020. This zone represents a key psychological and technical level that would confirm the breakout’s strength. The analyst believes that “daily 25% gains for PEPE price will become the norm again” if bullish conditions persist.

Moreover, the wedge breakout also breaks a multi-week downtrend, strengthening the argument that PEPE price is entering a new upward phase. Retail sentiment has been improving, and traders have started to buy back risk-on assets.

PEPE Whale Pumps Out 531B at 460K Loss

According to data from The Data Nerd, a whale address identified as 0xD07 deposited 531.63 billion PEPE tokens, valued at approximately $5.06 million, into Binance on June 25. These tokens have been worth $5.52 million in the past week, which means that it has realized a loss of $460,000 in case of a selloff.

The whale selloff occurred in four different transactions, three 50 billion token exchanges and one 31.5 billion token exchange, 299K to 475K in each transaction. Selling that loss denotes capitulation, which is a typical action that happens at price bottoms, the mounting pressure forces weak hands to give up.

Such activity, when paired with a technical breakout, strengthens the bullish case for the PEPE price. The fact that the market may be receiving this huge supply of tokens without collapsing any further may signal that there may be more buying as the scene is already set to start accumulating.

Analysts See a 40X Upside If Macro Channel Holds

Moreover, long-term projections from CryptoElites showed that PEPE price could be at the beginning of a new macro uptrend. According to a chart presented by the analyst, there was a price channel with frequent cup-and-handle patterns.

Moreover, according to the model, PEPE coin price has just bounced from the lower boundary of this ascending channel, which the chart labels as the “Bottom.”

If the structure plays out, PEPE price could surge as much as 40 times from current levels, potentially reaching $0.000379.The analyst noted that “the rally is about to begin very soon,” suggesting this level could be hit within a broader bullish cycle.

Derivatives Volume Surges to $2.04B as Open Interest Resets

Coinglass data indicated that in the past 24 hours, PEPE derivatives trading volume increased by 0.87% to reach $2.04 billion. However, open interest declined by 14.19% to $527.14 million. Such a decline indicates that a lot of overleveraged traders were knocked out of the market, re-balancing the market to experience constant upward motion.

Binance’s account-based long/short ratio sits at 0.94, while OKX’s long/short ratio is a more aggressive 2.35 in favor of longs. Moreover, the liquidation statistics indicate that a total of 2.06 million got eliminated within the last 24 hours, including 1.31 million of long positions and 746K of shorts.

Funding rates are also close to being neutral, and this will decrease the risk of another squeeze and will look towards a much healthier derivatives environment.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.