Pepe coin price has crashed and erased over $6.7 billion in value in the past few months. It has crashed from a record high of $0.00002827 in December last year, to $0.0000080. Still, a combination of strong technicals and falling exchange balances signal that the Pepe price may enter beast mode soon.
Pepe Coin Price May Surge as Exchange Balances Fall
There are signs that investors are still accumulating Pepe coin, signaling a potential rebound in the coming weeks. Data by CoinCarp shows that, despite its recent crash, the number of Pepe holders has jumped to 417,000, up from 406,000 on the same day a month earlier. In most cases, holders drop as a coin’s price retreats.
Other data shows that Pepe balances on exchanges has dropped in the past few weeks. There are now 240.22 trillion tokens on exchanges, down from 241.86 trillion a week earlier. The total supply on exchanges has also dropped to 57%.
Falling exchange reserves is a sign that crypto investors are holding their coins in their more secure self-custody accounts. That’s because investors move their coins from their wallets to exchanges when selling them.
Technicals Point to More Pepe Coin Price Surge
Pepe price may also enter beast mode because of its string technicals. The first main bullish catalyst is that there are signs that it has formed a giant double-botton pattern at $0.000005895. This pattern has two key parts: two down swings and a neckline, which in this case, is at the all-time high of $0.00002827.
Further, the Pepe coin price has formed a falling wedge chart pattern. This pattern happens when an asset consolidates inside a descending and converging channel. A bullish breakout typically happens when the two lines near their confluence.
Interestingly for Pepe, the confluence has happened at the lower side of the double-bottom pattern.
Technical indicators point to more Pepe coin price upside. The BBTrend indicator has continued rising and is about to flip the zero line. This is a unique indicator created by subtracting the distance of the lower and upper lines of the Bollinger Bands.
The Relative Strength Index (RSI) and the Percentage Price Oscillator have all pointed upwards. Therefore, the coin may surge soon, potentially to the all-time high of $0.00002827, up by 265% from the current level.
A crash below the double-bottom point at $0.00000589 will invalidate the bullish Pepe price forecast. It will do that by cancelling the double bottom pattern and signaling more downside to $0.0000500.
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