Pepe price could be on the verge of a strong bullish breakout after forming a golden cross pattern and as whales accumulated 170 billion tokens in May.
Pepe (PEPE) jumped to a high of $0.00001512 on Thursday, up by 180% from its lowest level in April. This rally happened as Ethereum (ETH) briefly broke to $2,788, its highest level since February.
There are mounting signs that Pepe may be primed for further gains. According to Nansen data, whale wallets have significantly increased their holdings this month, purchasing 170 billion PEPE and bringing their cumulative total to 9.95 trillion tokens.
Smart money tracked by Nansen has also been aggressively accumulating. Their holdings rose by 128% in May to 653.73 billion PEPE, an indication that sophisticated investors expect the rally to continue.
At the same time, exchange outflows rose by 2.68% in May, bringing the overall exchange balance down to 252.6 trillion PEPE, the lowest level since Jan. 21. Exchange balances had peaked at 260 trillion earlier this year as PEPE declined from its December all-time high of $0.00002831 to a low of $0.0000052 in March.
Declining exchange balances, paired with aggressive whale and smart money accumulation, suggest a strengthening bullish outlook for Pepe.
The other bullish catalyst for Pepe is the view that Ethereum price may be about to surge as crypto.news predicted. Ethereum is seeing strong ETF inflows and has forme a bullish flag pattern. Pepe often jumps when ETH is thriving.
Pepe price technical analysis as a golden cross forms
From a technical perspective, Pepe has formed a golden cross on the daily chart, with the 50-day moving average crossing above the 200-day moving average, a pattern often associated with major bullish breakouts.
Additionally, PEPE has formed both a bullish flag and a rounded bottom pattern. The bullish flag is a classic continuation setup, consisting of a sharp vertical move followed by a consolidation channel. The rounded bottom reinforces a longer-term bullish reversal.
A confirmed breakout above this month’s high of $0.00001625 would signal continuation, with the next upside target at the all-time high of $0.00002831, representing a 96% potential gain from current levels.
