Is Pepe Coin Ready for a 40% Climb to ATH? Reversal Pattern Offers Insights

The crypto market commenced the new week on a bearish note, with Bitcoin abruptly declining to $66,700 on Monday. The BTC price encountered substantial resistance at $70,000, impeding the recovery in the altcoin market observed since last week. Amidst the sell-off, the Pepe coin recorded an intraday loss of 1% to reach $0.0000116, extending its breakout from the inverted head and shoulder pattern.

Further Reading: Breaking: US Government Transfers 29,800 Bitcoin From Silk Road

77% of PEPE Coin Holders in Profit: Is a Major Price Breakout Imminent?

Despite the general market recovery, the frog-themed meme coin PEPE exhibited a sluggish trend over the past two weeks. The daily chart's alternating green and red candles indicate indecision among buyers and sellers in driving the asset.

The RSI slope hovering at 50% reflects a neutral market sentiment.

However, a detailed technical analysis suggests that this consolidation period may be an accumulation trend preceding an inverted head-and-shoulder breakout. This bullish reversal pattern is typically identified at market bottoms and signals a shift in market sentiment with a new high-low formation.

Pepe Coin| Tradingview

The PEPE coin currently trades at $0.0000116, with a market capitalization of $4.88 billion. A potential breakout from the neckline resistance would signal a significant reversal and provide support for a rally.

Based on the chart dynamics, the post-breakout rally could elevate the asset by 40% to a new high of $0.000018.

Further Reading: Breaking: Mt. Gox Readies Transfer of Remaining 80.5K Bitcoins, BTC Faces Pressure

The Global In/Out of the Money (GIOM) metric for Pepe Coin suggests a positive outlook. Currently, 77% of PEPE coin addresses are 'in the money' (generating profits), while only 11% are 'out of the money' (incurring losses). This distribution implies potential price stability, as most investors are less likely to sell due to their profitable positions.

GIOM Metric| Intotheblock

Approximately 35,230 addresses holding 56.5 trillion PEPE at prices ranging from $0.0000110 to $0.0000130 are at breakeven. A breakout from the Inverse Head and Shoulders (H&S) pattern would also push these holders into profit. The minimal red spheres on the GIOM chart indicate that there is limited resistance for PEPE to reach its all-time high.

The 50D and 100D EMA徘徊在 0.0000108 美元附近，形成了强劲的买家支撑区域。因此，跌破该支撑可能使看涨论点失效，并使资产下跌 12% 至 2024 年 4 月以来的上升趋势线。

对于买家而言，守住该支撑位至关重要，因为进一步突破可能导致重大回调。