- Pepe’s technical indicators didn’t give off strong bullish signals.
- Whales increased their long exposure to Pepe in February.
The meme coin market has been on a tear recently, with all major coins logging impressive weekly gains, according to data fetched from CoinMarketCap.
Pepe breaks losing streak
Frog-themed token Pepe [PEPE] was no exception. The token soared 12.83% over the last seven days, snapping a month-long downtrend.
While the fourth-largest meme coin was down 23% year-to-date (YTD), the latest rally piqued the interest of not just Pepe proponents, but the broader meme coin market.
And this might just be the start of good things to come. Noted technical analyst Ali Martinez spotted a buy signal on the coin’s 3-day chart, prompting him to issue bullish forecasts.
$PEPE is currently showing signs of forming the right shoulder of a head-and-shoulders pattern on its 3-day chart. Additionally, the TD Sequential indicator has issued a buy signal within this timeframe, suggesting an anticipated bullish impulse for #PEPE. pic.twitter.com/brSr7uln3z
— Ali (@ali_charts) February 10, 2024
Technical indicators give mixed signals
AMBCrypto analyzed some other key technical indicators of Pepe to concur with the aforementioned findings.
The Relative Strength Index was almost on the neutral 50 level, indicating a balance between bullish and bearish positions. A sharp bounce from this level will enforce bullish sentiment.
The Moving Average Convergence Divergence (MACD) line crossed over the signal line as of this writing.
However, since it was still in the negative zone, it should be treated as a pullback rather than a bullish uptrend.
Furthermore, the reading of the Bollinger Bands (BB) showed Pepe’s price moving above the 20-day SMA, indicating that buying pressure was increasing.
The bands were constricted at the time of writing, a potential sign of future increased volatility.
Whales show confidence
Meanwhile, wealthy investors of Pepe got excited about the recent rally. As per AMBCrypto’s analysis of Santiment data, whale transactions jumped to a weekly high on the 8th of February.
The interest stemmed out of bullish expectations from Pepe.
Read Pepe’s [PEPE] Price Prediction 2024-25
The number of whale positions betting on Pepe’s price increase surged significantly over the past week, AMBCrypto detected using Hyblock Capital’s data.
About 55% of all such positions were long at press time, up from 50% at the start of February.