Pepe Coin remains in a consolidation phase as it slowly forms a falling wedge pattern. This pattern could lead to an explosive breakout. Considering that PEPE is an Ethereum-based meme coin and ETH has been showing strength, it is likely this top meme coins could follow suit and rally. This article explores how high Pepe Coin price could get if Ethereum price hits $5,000.
Pepe Coin Price Forecast If Ethereum Hits $5,000
Pepe Coin is one of the best-performing cryptocurrencies this year as it soared by over 2,340% from its January lows. Recently, however, it has lagged other large coins like Bitcoin and AAVE that have soared by double digits. PEPE has dropped by 17% from the highest point this year, but its price fractal imitates that of the early 2024 consolidation that led to the 2,340% rally.
A potential catalyst for Pepe price is the performance of Ethereum, the second-biggest crypto in the world. As mentioned above, PEPE is built on the Ethereum blockchain and is considered the mascot of ETH. Although ETH underperfomed in the first half of 2024, it has shown strength recently. This shift in paradigm is bullish and its ripple effect could serve as tailwind for PEPE. In an X post, Max, a crypto analyst with over 63,000 followers, noted that the coin will have a strong bullish breakout if Ethereum moves above $4,000.
Ethereum has struggled to move above the resistance of $4,000 in the past few days. Still, as we wrote recently, there are rising odds that ETH price will stage a strong comeback and hit $5,000. We pointed to the ongoing whale accumulation, rising Ethereum transactions, and growing inflows in ETFs.
Pepe coin price is likely to do well if Ether surges because it is the second-biggest meme coin in its ecosystem after Shiba Inu.
The bullish outlook noted by technicals are also reflected by on-chain metrics, which also point to a massively optimistic future for Pepe Coin price.
Pepe Whales On Accumulation Spree
The other potential catalyst for Pepe price is that supply held in exchanges recent collapse. This drop has coincided with the rising supply held by top non-exchange addresses. That is a sign that whales are accumulating and moving their holdings off centralized exchanges. Such a development notes investor confidence and often leads to bull runs.
Whale accumulation is one of the most popular bullish catalysts for a cryptocurrency. Etherscan data shows that one of these whales transferred 1 billion Pepe coins valued at over $2.3 million from MEXC.
This hoarding is likely because many Pepe holders are currently in the money. Data from IntoTheBlock shows that there are 331k in the money addresses and just 12.2k wallets out of the money. Furthermore, the only resistance that is preventing this meme coin from climbing higher is the $0.000024, which is where 20,780 addresses purhcased nearly 42.2 trillion PEPE tokens. Overcoming this cluster of “at the money” holders could kickstart a rally.
Pepe Coin Technical Analysis
The daily chart shows that the Pepe coin price continues its consolidation after it reached the year-to-date high of $0.00002827. A falling wedge pattern continues to form, a highly bullish sign. This pattern had two falling and converging trendlines and often leads to gains when the two lines near their convergence.
Pepe price remains above the 50-day moving average. It also recently formed a small inverse head and shoulders pattern. The distance between the YTD high and the head is about 33.42%. Therefore, if we measure this distance from $0.00002595, we estimate that the Pepe coin price will get to $0.00003450, which is 47% above the current level.
The bullish view is invalidated if the Pepe Coin price drops below the psychological point at $0.20. Such a move points to further drops to $0.00001712, the upper side of the previous cup and handle pattern.
Frequently Asked Questions (FAQs)
Pepe price has stalled as it continues to form a falling wedge chart pattern on the daily chart. This pattern points to an eventual rally in the near term.
ETH has an impact on Pepe because it is the second-biggest meme coin in its ecosystem. As such, ETH’s bullish breakout may lead to more Pepe gains.
Odds of Pepe rising to $1 in the near term are limited since it needs to jump by over 4 million percentage to do that.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/how-high-will-pepe-coin-price-get-if-ethereum-hits-5000/
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