- Pepe Consolidates as Bollinger Bands Signal a Potential Breakout.
- Funding rates turn green as the whales accumulate.
Pepe [PEPE] has emerged as a memecoin with substantial growth potential in the fourth quarter of 2024. After a remarkable increase of over 1000% after the consolidation phase, PEPE has attracted significant attention.
Initially caught in a sideways market after launching on the Ethereum blockchain, PEPE/USDT is now forming a triangle pattern.
This consolidation, combined with the tightening of the Bollinger Bands, suggests that a breakout could be imminent. Traders are preparing for a potentially bullish end to the year, supported by historical trends.
Source: TradingView
It is currently consolidating within a triangle pattern, with the Bollinger Bands tightening. This pattern often indicates a short-term breakout.
Historical data shows that such setups often precede significant price movements. The Chaikin money flow has also broken out of its wedge pattern, indicating that the accumulation phase is nearing its end.
As the CMF rises, buying pressure increases, indicating that the memecoin could experience a significant rise.
The prolonged consolidation since May further supports the potential for a strong rally if market conditions favor altcoins.
Pepe’s financing rates are turning green
Funding rates have turned green, providing further support for a bullish view on Pepe memecoin.
When the funding rate is green, it means more traders are going long, which reflects positive sentiment.
This situation means that long traders pay short traders to keep their positions open. Such a trend often leads to increased demand for assets and higher prices.
Source: Coinglass
However, it also increases the risk of liquidation of long positions if the market shifts.
Address companies and whales
Analysis of addresses per position in USD shows that whales continue to increase their positions. Traders holding more than $10 million in PEPE are up 5.26%.
While retail traders with smaller positions are also rising, mid-market traders have seen a slight decline.
Nevertheless, the continued aggressive purchasing of whales indicates strong confidence in the potential of PEPE.
Source: IntoTheBlock
New adoption rate
The new adoption rate for Pepe stands at 26%, reflecting a stable trend without decline. This steady adoption rate indicates that more merchants are getting involved, although the pace is not as fast as some enthusiasts might hope.
Is your portfolio green? View the Pepe Profit Calculator
Nevertheless, a steady adoption rate is generally bullish and indicates growing interest in PEPE.
Source: IntoTheBlock
Overall, PEPE shows promising signs for a potential price increase. Key indicators, positive funding rates, strong whale activity and stable underwriting rates all contribute to a bullish outlook as we approach the fourth quarter of 2024.
Credit : ambcrypto.com
