Pepe Coin Set for Massive Surge? Analysts Predict 100% Gain Post-FOMC Meeting
Pepe (PEPE) coin has experienced a 35% price drop two weeks after reaching a record high of $0.00001725. However, a combination of technical, on-chain, and fundamental signals suggests a potential bullish reversal following June’s Federal Open Market Committee (FOMC) meeting. Let’s dive into these catalysts in detail.
Rising Wedge Pattern Boosts 100% Rebound Potential
As of June 11, PEPE’s price is testing the lower trendline of its prevailing rising wedge pattern, aiming for a rebound towards the upper trendline in the coming days.
For those unfamiliar, rising wedges are typically bearish reversal patterns characterized by two ascending, converging trendlines. Ideally, these patterns resolve when the price breaks below the lower trendline, accompanied by a rise in trading volume, potentially leading to a fall by the maximum distance between the upper and lower trendline.
Currently, PEPE’s retest of the wedge’s lower trendline is occurring with lower volumes, suggesting that a breakdown is not imminent. Instead, the memecoin might rebound towards the upper trendline, coinciding with the 2.618 Fibonacci retracement level of $0.00002205, approximately 100% above current price levels.
Further bolstering the rebound potential are two other support levels near the falling wedge’s lower trendline: the 50-day exponential moving average (50-day EMA; the red wave) and the 1.0 Fib retracement line.
However, a break below this support confluence could trigger a rising wedge breakdown scenario, with downside targets for July ranging between $0.00000284 and $0.00000762, depending on the breakdown point.
Whale Accumulation Indicates Bullish Sentiment
Additional bullish cues for the PEPE market come from ongoing accumulation and holding behavior by its wealthiest investors.
For instance, the supply held by entities with at least 1 billion PEPE coins remained relatively flat during the June price correction. Similar holding behavior is visible among entities holding 100 million to 1 billion PEPE coins throughout June, indicating a long-term holding strategy by large investors or institutions.
Conversely, smaller cohorts, including the 10 million to 100 million PEPE balance and the 1 million to 10 million PEPE balance, have been accumulating during the price dips in June.
The rising percentage of smaller and mid-sized holders indicates growing participation and confidence among retail investors and smaller entities. Meanwhile, the sharp increases in holdings by large addresses suggest strategic accumulation.
Fed Dot Plot to Influence Further PEPE Price Action
PEPE’s probability of rallying over 100% in the coming days is high if the June 12 U.S. Consumer Price Index (CPI) report shows a monthly increase between 0.20% and 0.25% for May. Such an outcome is expected to significantly boost expectations for an interest rate cut by the FOMC in September, according to Stuart Kaiser, Citigroup’s head of US equity trading strategy.
Lower interest rates are generally bullish for non-yielding risk-on assets, including volatile cryptocurrencies like PEPE.
Moreover, from a fractal analysis standpoint, PEPE’s price trends in 2024 demonstrate a pattern of sharp gains immediately following FOMC meetings, suggesting a high likelihood of similar positive performance after the upcoming Fed officials’ meeting on June 11-12.
In conclusion, while PEPE has faced recent price corrections, a confluence of technical patterns, on-chain data, and macroeconomic indicators point towards a potential 100% rebound in the near future. Investors should keep a close eye on the upcoming FOMC meeting and CPI report as key determinants of PEPE’s next significant price movement.
