Pepe Coin (PEPE) is showing signs of a potential bullish reversal as it tests the resistance of a falling wedge pattern—a formation often preceding upward breakouts. While the token remains in a uptrend, analysts believe a rally toward $0.000015 is possible if key levels are breached.

Falling Wedge and Technical Indicators Point to Breakout Potential

Since late May, PEPE has traded inside a falling wedge, with the current price stabilizing around $0.00001064. The upper boundary of the wedge—between $0.00001000 and $0.00001050—is now under test. A breakout here could trigger an upside move targeting $0.00001200 to $0.00001400, with $0.000015 as the long-term goal.

MACD indicators are beginning to shift bullish, while the Chaikin Money Flow remains slightly negative at -0.17 but is flattening, suggesting early signs of capital inflows. However, momentum remains tentative, and confirmation is still needed.

Whale Activity Retreats but Could Return Post-Breakout

Whale transactions have declined sharply since May, when PEPE peaked at over $0.000017. At that time, daily large trades surged to 800. Currently, whale activity has dropped to around 200 transactions daily, reflecting a cautious or sidelined market stance.

This pullback in activity could be temporary. If the wedge breakout materializes, renewed interest from large holders is likely, potentially accelerating the rally.

On-Chain Sentiment Remains Mixed

The profit-to-loss ratio has risen to 2.55—its highest since early May—signaling that many holders are in profit and might consider selling, as historically observed. Currently, only 26.5% of PEPE wallets are in profit, while 64.72% are underwater. Yet, steady wallet growth has pushed the total holder count past 400,000, suggesting rising adoption despite price volatility.

Speculative Interest Declines as Market Awaits Confirmation

Open interest has dipped 5.71% to $470.49 million, while derivatives trading volume fell 18.42% to $1.56 billion—signs of reduced speculative pressure. This slowdown often precedes major moves as traders await clear confirmation.

For now, the critical levels to watch are $0.00000900 as near-term support and $0.00001050 as key resistance. A successful breakout above this zone could pave the way toward $0.00001200–$0.000015, positioning Pepe for a new upward phase if broader sentiment aligns.

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