Pepe Coin price has imploded by double digits from its all-time high, erasing most of the gains made in 2024.
Pepe (PEPE), a highly popular meme coin, was trading at $0.0000084 on Thursday, down by over 70% from its highest level in December. Still, there are a few reasons why the coin could bounce back and potentially hit its all-time high of $0.00002828.
Pepe Coin price has formed a falling wedge
The first key reason the meme coin may rebound soon is that it has formed a falling wedge pattern and a bullish divergence on the daily chart.
A falling wedge is a pattern made up of two descending and converging trendlines. In Pepe’s case, the upper side of this wedge started forming shortly after it reached a record high in December, while the lower trendline began developing in November.
The two trendlines are now converging, signaling that bearish momentum is fading. Indeed, the Average Directional Index, a popular indicator that measures a trend’s strength, has fallen from 40 to 32.
The Relative Strength Index and the MACD oscillators have formed a bullish divergence pattern. This pattern occurs when an oscillator rises while the price falls. It often leads to a strong breakout, which, in this case, could push Pepe’s price to $0.00002828, up by 245% from the current level.
Potential rotation from Solana meme coins
Pepe coin price may benefit from the potential rotation from Solana meme coins to more established tokens. Concerns have grown over the Solana meme coin ecosystem as the number of rug pull scams rises. One notable case was Libra, which was promoted by Javier Milei.
Many other meme coins in the Solana ecosystem have declined as insiders offloaded their holdings. Pepe differs from these coins since it has a longer track record, having launched in 2023 and surged by over 3,500% since then.
17% of Pepe whales have never sold
Further, data compiled by Murad, a popular X analyst, shows that about 17% of Pepe coin whales have never sold a coin. This makes it the third-biggest token with that quality after SPX6900 (SPX) and GigaChad. That is a sign that these whales hope that the coin will bounce back over time.
In addition to whales, the number of Pepe holders has continued to rise despite the coin’s decline. There are now over 406,000 holders, up from 392,650 last month. This may indicate potential accumulation.
