TL;DR

Analysts spotted bullish technical patterns and envisioned further gains for PEPE. One popular X user believes the meme coin will soon flip SHIB and become the second-biggest meme coin.

PEPE on the Run

The frog-themed meme coin has followed the overall rally of the cryptocurrency market in the past several days. Just a few hours ago, it spiked to $0.00001307, which represents a 27% weekly increase.

PEPE Price, Source: CoinGecko PEPEs market capitalization currently stands at around $5.5 billion, making it the 34th-largest cryptocurrency and the third-biggest in the meme coin sector. 

Some analysts believe the assets bull run is only starting. The X user Max thinks PEPE is about to begin flying, adding that conviction has never been higher than right now.

$Pepe is about to begin flying. Conviction has never been higher than right now.

This is exactly the same set up at Feb/March of 2024 except this time we have ETHBTC as a tailwind instead of a headwind.

Look closely at my chart lines their annotations. Same exact set up. https://t.co/bCVTezE32I pic.twitter.com/GdYigrUrFy

The popular analyst, using the X moniker Nebraskangooner, also touched upon the meme coin, noting the formation of an inverse head and shoulders structure on its price chart. This is considered a bullish technical pattern that indicates additional gains in the short term. 

Jake Gagain described PEPE as the SHIB of this bull cycle. In his view, the most significant advantages of the frog-themed meme coin include its listing on most leading crypto exchanges and the sporadic support from Elon Musk. Gagain went even further, claiming that Shiba Inu has already had its major run up, predicting that PEPE could flip it in the near future. Currently, the gap between the two is less than $3 billion.

The Indicators

Less than a week ago, one whale identified as 0x06b3 purchased 227.8 billion PEPE tokens for approximately $2.7 million. Such actions are closely monitored by smaller players who could also decide to enter the ecosystem and distribute fresh capital. Accumulation from whales is bullish for another reason: it leaves fewer tokens available on the open market, which could propel a price pump (assuming demand doesnt head south).

However, some metrics should be viewed by investors as warning signs. PEPEs Relative Strength Index (RSI) has neared the bearish zone of 70, indicating that the price has risen too rapidly in a short period.

PEPE RSI, Source: CryptoWaves Readings above that zone typically suggest that the asset is overbought and may be headed for a short-term pullback, while anything below 30 is considered bullish territory.