Could Pepe Coin Price Really Explode 100% After FOMC Meeting?

Pepe (PEPE) coin’s price has dropped by approximately 35% two weeks after establishing a record high of $0.00001725. Nonetheless, a slew of technical, on-chain, and fundamental signals show a potential bullish reversal after June’s Federal Open Market Committee (FOMC) meeting. Let’s discuss these catalysts in detail as follows.

Pepe Coin Price Prediction: Rising Wedge Pattern Boosts 100% Rebound Potential

As of June 11, PEPE’s price was testing its prevailing rising wedge’s lower trendline as support, eyeing a rebound toward the pattern’s upper trendline in the coming days.

For the unversed: Rising wedges are typically bearish reversal patterns characterized by two ascending, converging trendlines. In a perfect scenario, these patterns resolve when the price breaks below the lower trendline while accompanying a rise in trading volume — and falls by as much as the maximum distance between the upper and the lower trendline.

PEPE’s retest of the wedge’s lower trendline accompanies lower volumes, indicating that a breakdown—for now—is not imminent. Instead, the memecoin could undergo a rebound toward the upper trendline coinciding with the 2.618 Fibonacci retracement level of $0.00002205, up about 100% from the current price levels.

The rebound possibilities rise further due to the presence of two other support levels near the falling wedge’s lower trendline: the 50-day exponential moving average (50-day EMA; the red wave) and the 1.0 Fib retracement line.

Nonetheless, a break below the said supper confluence risks triggering the rising wedge breakdown scenario, with the downside targets for July between $0.00000284 and $0.00000762, depending on the breakdown point.

PEPE On-Chain Analysis Shows Whale Accumulation

More bullish cues for the PEPE market come from the ongoing accumulation and holding behavior witnessed by its richest investors.

For instance, the Pepe supply held by entities with at least 1 billion PEPE coins (yellow) remained relatively flat during the June price correction. Similar holding behavior is visible among entities holding 100 million—1 billion PEPE coins (red) throughout June, indicating a long-term holding strategy undertaken by the largest investors or institutions.

On the other hand, lower cohorts, including the 10 million—100 million PEPE (gray) balance and the 1 million—10 million PEPE (brown) balance—have been accumulating during the memecoin’s price dips in June.

The rising percentage of smaller and mid-sized holders (black and brown lines) indicates growing participation and confidence among retail investors and smaller entities. Meanwhile, the sharp increases in the holdings of large addresses (gray and red lines) suggest strategic accumulation.

Fed Dot Plot to Decide Further PEPE Price Action

PEPE’s probability of rallying by over 100% in the coming days is high if the June 12 U.S. Consumer Price Index (CPI) report shows a monthly increase between 0.20% and 0.25% for May. Such an outcome is expected to boost expectations for an interest rate cut by the FOMC in September significantly, according to Stuart Kaiser, Citigroup’s head of US equity trading strategy.

Lower interest rates are generally bullish for non-yielding risk-on assets, including volatile cryptocurrencies like PEPE.

Moreover, from a fractal analysis standpoint, PEPE’s price trends in 2024 demonstrate a pattern of sharp gains immediately following FOMC meetings.

This trend suggests a high likelihood of similar positive performance after the upcoming Fed officials’ meeting on June 11-12.