Pepe Eyes $0.000010 Amid Falling Wedge Breakout Potential

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

Pepes 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.

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.

Pepe Price Chart

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.