Pepe Coin Price Could Surge 45% as Exchange Volume Declines

Pepe coin (PEPE), the third-largest meme coin, has experienced a retreat of over 27% from its highest price this year, but there are signals that it could rise by as much as 45% in the coming weeks. As of Wednesday, November 27, PEPE was trading at $0.0000187, giving it a market cap of over $7.8 billion.

Several factors suggest a potential upward movement for Pepe coin, particularly the ongoing whale activity and reduced exchange supply. According to data from Nansen, a leading crypto analytics platform, the number of Pepe coins on exchanges dropped by 1.46% in the past week, now standing at 239.84 trillion coins, which represents about 57% of its total supply. Major exchanges like Binance, Bybit, OKX, Crypto.com, and Robinhood hold most of these coins. Notably, Pepe experienced a $9.19 million outflow from exchanges in the last 24 hours. Crypto outflows are often seen as a positive sign, indicating that investors are choosing to hold onto their assets rather than trade them, potentially signaling long-term confidence in the coin.

On-chain data further supports the bullish outlook, with large “whale” investors continuing to buy into Pepe. One whale spent over $2.7 million on Wednesday purchasing the token, while another whale moved almost $1 million worth of Pepe coins off Binance, further tightening supply.

Another bullish signal is the coin’s trading volume, which remains substantial compared to other meme coins. Pepe had a 24-hour trading volume of $2.9 billion, second only to Dogecoin, which saw $8 billion in volume. High trading volumes often indicate strong market interest and liquidity, providing further support for the coin’s price potential.

From a technical perspective, Pepe has recently completed a “break and retest” pattern, a common bullish signal. This occurs when a coin rises above a key resistance level and then retraces to test the previous resistance as new support. In Pepe’s case, this was observed when the coin dropped and retested support at $0.0000172, its highest level in March 2024, and the upper part of the cup-and-handle pattern.

If the pattern holds, the next target for Pepe could be around $0.000028, representing a 45% increase from its current level. Additional technical indicators, such as the formation of a falling wedge chart pattern and a small morning star candlestick pattern, point to a potential bullish breakout in the coming weeks. The immediate price target is the year-to-date high of $0.000025, followed by the key support level at $0.0000172.

In summary, while Pepe has faced a recent price dip, its underlying fundamentals, including reduced exchange supply, strong whale activity, and significant trading volume, coupled with technical patterns, suggest a potential price increase of up to 45%. Investors may want to watch for continued bullish confirmation as the coin approaches key resistance levels.