Why PEPE traders should look out for a 23% hike on the memecoin’s charts

• PEPE broke out of an inverse head and shoulders pattern, with the crypto aiming for a 23% surge to $0.000012
• Whale activity fluctuated as network participation dropped across the board for PEPE

At the time of writing, the popular memecoin PEPE was in the news after it formed an inverse head and shoulders pattern – A well-known bullish reversal structure signaling a potential price surge. In fact, the left and right shoulders highlighted higher lows, indicating increasing buying momentum, while the head represented the lowest point in the pattern.

The price seemed to have broken through the $0.00001 neckline, confirming bullish strength. Based on the measured move from the breakout, PEPE may now be targeting the $0.000012 resistance level – Representing a potential price hike of 23% if momentum continues.

Source: TradingView

PEPE faces critical test at $0.000012

PEPE’s price action, at press time, seemed to be testing key support and resistance levels that could dictate its next movement. The immediate resistance stood at $0.000012 – A level where previous selling pressure has emerged. 

If PEPE closes above this level, further gains could follow.

On the downside, the support zone was at $0.000008, which previously acted as a strong buying region. If the price pulls back, $0.0000095 may serve as an intermediate support level before testing lower levels. 

Hence, traders are monitoring whether PEPE will sustain its breakout or face short-term corrections before another upward move.

Whale activity and market trends

Data from IntoTheBlock shows underlined fluctuating activity from large PEPE holders. The 7-day whale accumulation trend fell by -45.77% – Hinting at a recent decline in buying pressure from major investors. 

However, the 30-day accumulation rose by +103.64%, alluding to strong buying activity last month.

Source: IntoTheBlock

The 90-day trend, however, had a reading of -155.09%, pointing to a long-term decline in large holder positions. What this meant was that while short-term accumulation has been on the rise, long-term whales may be offloading positions too. 

The next move in PEPE’s price will likely depend on whether large holders continue accumulating or begin selling again.

Declining network activity raises concerns

Finally, the Addresses Stats chart pointed to a drop in network participation, which could affect liquidity and demand. The 7-day New Addresses metric (NA) fell by -31.72%, meaning fewer new investors are entering the market. 

Additionally, Active Addresses (AA) declined by -50.72% – A sign of reduced transaction activity.

Source: IntoTheBlock

The Zero Balance Addresses (ZBA) metric also dropped by -63.73% – A sign of low wallet movement and lower selling pressure. 

With memecoin speculation on the rise, many are questioning whether PEPE’s breakout will lead to a new rally or face resistance at higher levels. At this point, it’s a waiting game for the memecoin’s investors.