PEPE Analysis: Price Forms Bullish Flag, Could Make 100% of Retail Investors Profitable

The 4-hour price chart of Pepe (PEPE) has formed a bullish price pattern, indicating that the price of this meme coin may be ready to reach a new ATH. At the time of writing, the price of PEPE is $0.000021, down 17% from the ATH it reached on 11/14.

As a result, 1% of the token holders are in the red, while 7% are at their break-even point. This on-chain analysis reveals how the price action of PEPE can bring profits to all these holders.

Pepe's technical pattern signals a recovery

The 4-hour price analysis shows that the PEPE price chart has formed a bullish flag. A bullish flag is a continuation pattern that suggests the price of a cryptocurrency is likely to continue its uptrend after a brief consolidation period. The pattern consists of a "flagpole," representing the initial price increase, followed by a "flag," indicating the consolidation phase, and a breakout, occurring after the price rises above the resistance level.

As seen below, the price of PEPE is on the verge of breaking out from the $0.000021 area. Once confirmed, this bullish flag formation could lead to a significant price increase beyond the ATH of $0.000025.

This forecast is also in line with the Global In/Out of Money (GIOM) indicator. The global GIOM classifies all wallet addresses into groups based on the price levels at which they previously bought. Larger groups indicate stronger support or resistance levels at those price points, as they represent areas where many investors are holding firm. According to IntoTheBlock, only 3,940 addresses hold 2.76 billion tokens, and are accumulating around $0.000023, which is out of the money.

Given the weak resistance and strong support, the price of PEPE could rise. In summary, the on-chain metrics suggest the value of this meme coin could increase to as high as $0.000041.

PEPE Price Prediction: First Target is $0.000032

On PEPE's daily price chart, the token appears to be following a similar trajectory to the 250% surge around March. Back then, the ape-themed meme coin had broken out of a descending channel. From September 29 to the first week of November, PEPE had been trading within a descending channel. Although it has broken out of this channel, the image suggests the value of the meme coin could climb higher.

If this occurs, the value could rise to $0.000032, potentially reaching $0.000041. Conversely, if selling pressure increases, this may not happen. Instead, PEPE could drop below $0.000015.

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