As an experienced analyst, I’ve seen my fair share of market corrections and the resilience of certain coins during such turbulent times. The recent plunge in Bitcoin price to $61,000 and the subsequent sell-off of memecoin Pepe, down 7.3% to $0.0000065, is a stark reminder of the volatility that comes with investing in cryptocurrencies.
The cryptocurrency sector indicates a prolonged correction with Bitcoin reaching a low of $61,000 on Tuesday, causing a market-wide sell-off. Among the affected coins, Pepe, the memecoin based on the Frog theme, dropped by 7.3%, barely managing to stay above its 38.2% Fibonacci retracement level at $0.0000065. However, a closer look at the 4-hour chart reveals that Pepe’s price action is shaping up as a bullish pennant pattern, suggesting the possibility of an uptrend resumption.
Large-Scale Withdrawal of PEPE Tokens Signals Potential Market Rebound
As a crypto investor, I’ve experienced firsthand the excitement surrounding Bitcoin’s halving event, which fueled a significant price surge for altcoins like Pepe. The token bounced back from a low of $0.0000046 to reach a high of $0.00000819, marking a remarkable 78% growth. However, my optimism was soon tempered as the broader market underwent a correction following Bitcoin’s drop below $65,000. This post-halving correction sapped the recovery momentum for Pepe and other altcoins, leaving me to reassess my investment strategy once again.
For about a week, the Pepe Coin price moved back and forth without significant advancement, revealing hesitance among buyers during prolonged rejection candles. Nevertheless, this stalemate took shape between two converging trendlines, hinting at the potential formation of a pennant pattern.
In simpler terms, this technical arrangement permits a pause for buyers to regain their bullish energy and prepare for further price increases.
A notable transfer of 329.3 billion PEPE tokens, valued around $2.46 million, was observed on Lookonchain from Binance within a short span of 10 hours. This significant transaction indicates that savvy investors may be anticipating a price recovery for Pepe and are contributing to the ongoing upward trend.
A smart money withdrew 329.3B $PEPE($2.46M) from #Binance and #MEXC in the past 10 hours.
The smart money sold all $UNI before $UNI dropped and made more than $7M.
— Lookonchain (@lookonchain) April 30, 2024
In simpler terms, if the trendline of PEPE‘s price movement is broken above, it could pave the way for a surge in its value. This jump could potentially push PEPE up to $0.000009 and further towards $0.0001084.
Technical Indicator
- Moving Average Convergence Divergence: The MACD (Blue) and Signal (orange) wavering around the midline indicate the market trend is still wavering in uncertainty and will need higher conviction like the aforementioned breakout from the pennant pattern to resume a bullish rally.
- Exponential Moving AverageIndicator: The coin’s price rising above the 200-day EMA slope suggests a bullish sentiment in the near-term market cycle.
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2024-04-30 17:05