The price of Pepe Coin is under pressure, having fallen by 40% since its peak in May. However, signs are emerging that indicate a possible recovery.
Formation of a Falling Wedge
Pepe Coin has formed a falling wedge, a popular pattern for bullish reversals. This pattern consists of two declining and converging trendlines nearing their confluence point. The price of Pepe also remains above the ascending trendline connecting the lows since March this year. A key level to watch is at $0.00001625, representing an increase of over 70% from the current level.
High Trading Volumes and Open Interest
According to CoinGecko, the 24-hour trading volume of Pepe Coin was over $400 million in early July. While this volume is lower than historical levels, it significantly surpasses that of other popular meme coins. The open interest for Pepe futures remains steady at $522 million, which acts as a bullish catalyst for the asset.
Decline in Exchange Balances
Data from Santiment shows that the reserves of Pepe Coin on exchanges have fallen to a multi-year low of 101.7 trillion tokens, significantly down from the yearly high. The decline in exchange supplies and increasing whale accumulation may indicate an upcoming recovery.
Despite the current price drop of Pepe Coin, various factors, such as technical analysis and high investor activity, could contribute to its future recovery.
