Pepe (PEPE) could be on the cusp of a powerful bullish breakout following a series of compelling technical and on-chain developments. The meme coin surged to a high of $0.00001512 on Thursday, climbing more than 180% from its April lows, fueled by whale activity, declining exchange balances, and broader strength in Ethereum.
Whale Accumulation Signals Confidence
According to on-chain analytics platform Nansen, whale wallets accumulated over 170 billion PEPE tokens in May, bringing total whale holdings to 9.95 trillion PEPE. This significant accumulation reflects renewed interest and confidence from large holders, often considered a precursor to sustained price momentum.
In addition, so-called “smart money” wallets identified by Nansen as wallets with a track record of profitable and well-timed trades increased their PEPE holdings by 128% in May, now totaling 653.73 billion PEPE. Such coordinated activity among sophisticated investors suggests growing expectations of continued gains.
Exchange Balances Hit Yearly Low
Further strengthening the bullish case, exchange outflows rose by 2.68% in May, reducing the total balance held on exchanges to 252.6 trillion PEPE, the lowest since January 21. For context, exchange reserves had peaked at 260 trillion PEPE earlier in the year when prices were in decline.
This drop in exchange-held tokens, combined with rising whale and smart money accumulation, is typically interpreted as a sign that investors are preparing for long-term holding rather than near-term selling.
Ethereum Strength Adds to Momentum
PEPE has often mirrored Ethereum’s price action, and recent gains in ETH have provided additional lift. Ethereum surged to $2,788, its highest since February, supported by strong ETF inflows and the formation of a bullish flag pattern. Should ETH continue its upward momentum, it could serve as a secondary catalyst for PEPE’s rally.
Technical Setup: Golden Cross and Bullish Patterns
From a technical standpoint, PEPE’s chart is flashing multiple bullish signals:
- Golden Cross: The 50-day moving average has crossed above the 200-day moving average on the daily chart a formation known as a golden cross. This is widely seen as a strong bullish reversal signal in technical analysis.
- Bullish Flag: Following its sharp rise, PEPE is consolidating within a tight range, forming a bullish flag a continuation pattern that typically precedes another upward move.
- Rounded Bottom: A longer-term rounded bottom pattern is also visible, indicating a gradual but sustainable trend reversal from previous lows.
If PEPE can break above the May high of $0.00001625, analysts anticipate a surge toward its all-time high of $0.00002831, a potential 96% gain from current levels.
Final Thoughts
With a convergence of bullish technical indicators, increasing whale and smart money accumulation, and strengthening macro crypto conditions led by Ethereum, PEPE appears well-positioned for a significant breakout. While short-term volatility may persist, all eyes are now on whether the meme coin can reclaim its previous highs and validate the growing bullish momentum.
