The price of Pepe coin remained stable on Monday, as outflows from centralized exchanges increased following the formation of several bullish patterns.
Pepe (PEPE) climbed to $0.000070, marking a roughly 35% increase from its year-to-date low, which has resulted in a market capitalization of $2.9 billion.
Recent data indicates that a significant number of investors are transferring their tokens from exchanges to self-custody solutions. The total amount of tokens held on exchanges has decreased to 240.15 trillion, a decline of 1.21% compared to the previous week.
Rising outflows from exchanges are typically viewed as a positive sign, as they indicate that investors are opting to retain their coins instead of selling. Such outflows tend to diminish during strong downward trends when investor panic leads to hurried sell-offs.
Technical analysis suggests that the price of Pepe may be poised for an upward movement. The four-hour chart illustrates the formation of a small inverse head and shoulders pattern, with the head located at this month’s low of $0.000005245 and the neckline positioned at $0.000007415.
An inverse head and shoulders pattern is regarded as a bullish signal. A breakout above the neckline could result in further gains, with the next significant resistance level at $0.000008915, the peak reached on March 2.
Pepe coin price has formed a bullish divergence
The daily chart indicates that Pepe has also created a double-bottom pattern at $0.00005920. This pattern consists of two downward peaks with a neckline at $0.00002827, recognized as one of the most bullish reversal patterns in technical analysis.
The Relative Strength Index and MACD indicators have displayed a bullish divergence, characterized by a decline in asset price while oscillators trend upward — signaling a potential shift toward positive momentum.
Additionally, Pepe has formed a falling wedge pattern, delineated by two descending and converging trendlines. This formation suggests the possibility of a bullish breakout in the near future.
The initial target will be the psychological barrier at $0.000010. A breach above this level may propel Pepe toward $0.00001457, its lowest swing point as of December 20. Conversely, a drop below the year-to-date low of $0.0000053 would negate this bullish outlook.