LUCKNOW (CoinChapter.com) — Pepe memecoin price has formed a bullish technical pattern that could help the token break out of its consolidation phase. However, whales might spoil the party for the hopeful retail traders, aka “fishes.”
An X account, which tracks large PEPE transactions, noted that whales are moving massive amounts of the memecoin to exchanges, suggesting a potential dump likely in the future.
Whale transactions can often influence a token’s price action simply due to their sheer size. A whale wallet moved 1.4 trillion PEPE coins between two Binance-associated wallets. The transaction tracking service highlighted several other whales that moved their PEPE holdings to exchanges.
When traders move their token holdings to exchanges, it is usually to sell. As such, market participants consider exchange inflows bearish indicators. Interestingly, this whale transaction trend is not new for PEPE.
But PEPE Has A Bullish Signal
Despite the whale transactions, PEPE is not out of bullish cues, with the memecoin forming a bullish technical pattern called the ‘bull flag‘
Bull flags consist of a flag pole and result from a near-vertical rise in the crypto token’s prices. Assets in a strong uptrend often form the pattern.
A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.
The pattern is completed when the price breaks out of the flag area, continuing the previous upward trend. Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level.
Per the rules of technical analysis, the PEPE price might rally nearly 766% to reach the theoretical price target near $0.0000676 if it confirms the pattern.
PEPE Price Consolidates
Meanwhile, the PEPE price has been crabbing since March 16, with the bulls keeping the token above the 20-day EMA (red wave) despite bears pushing it 5% to reach a daily low near $0.00000769 on March 29.
If the rally continues, the PEPE coin price could target the 0.618 Fibonacci resistance near $0.0000093. Furthermore, flipping the immediate resistance could help Pepe memecoin price rally to the resistance near $0.000011 before paring gains.
However, given the recent Pepe memecoin whale transactions, traders will likely continue booking profits once the PEPE price breaches the $0.00001 mark. The ensuing sell-off could force Pepecoin to the 0.382 Fibonacci support near $0.000000675.
If the immediate support fails, the PEPE price might drop to the support near $0.00000512.
The relative strength index—a momentum indicator measuring asset price movements to identify overbought or oversold conditions—remained neutral for PEPE, scoring 54.98 on the daily charts.
