With a new steep correction in the meme coin market segment, the top memecoins are witnessing a sudden supply surge. Pepe, the frog team meme coin, is down by nearly 1.5% over the past 24 hours.
Currently, it is trading at a market price of $0.000008510, with a market cap of $3.85 billion. Will this steep correction drop the third biggest meme coin in the market to the $0.0000050 psychological support? Let’s find out.
PEPE Price Analysis: Eyeing a 47% Upside Potential
In the 4-hour price chart, the Pepe price action showcases a bullish breakout of a falling channel pattern. Additionally, the recovery run also hints at a big breakout rally of an inverse head-and-shoulders pattern.
The recovery run accounted for a price surge of nearly 60% within the past 16 days, extending from $0.0000057 to $0.0000094. The recovery run surpassed the 200-day EMA line and has resulted in a and is teasing a potential golden crossover between the 50 and 200 EMA lines.
However, the recovery run witnesses a minor hiccup as it reverses back to retest the 20 EMA line at $0.000008278. The short-term correction results in a negative crossover in the MACD and signal lines.
Thus, the momentum indicator triggers a short-term sell signal in the frog team memecoin. However, based on the price action analysis, a short-term pullback was due as the memecoin faces strong supply near the $0.0000090 psychological mark.
The crucial supply area is highlighted with a strong horizontal level. The bullish failure to sustain dominance above this mark highlights a strong supply area limiting the bullish trend from reaching the $0.000010 mark.
Nevertheless, with the broader market recovery, the memecoin is likely to sustain its recovery run and witness a potential and record price surge to $0.00001237. Thus, the price action analysis hits an upside potential of nearly 47%. On the flip side, the crucial support level remains the 200 EMA average line at the $0.0000080 mark.
PEPE Whales Gather Up Amid Breakout Rally
Amid expectations of a potential bullish continuation, qianbaidu.eth, an early investor in PEPE, recently withdrew 506.2 billion PEPE, worth approximately $4.4 million.
The whale now holds nearly 700 billion PEPE, valued at $5.11 million, with a floating profit of $164k. Notably, the investor had previously realized a $7.34 million profit from their PEPE investments.
