Pepe Coin is Setting Up For a 80% Price Boom in Q3 2024

Pepe (PEPE) looks poised to undergo massive upside moves by the end of the third quarter (Q3) of 2024, according to a mix of on-chain, technical, and fundamental indicators.

PEPE Technical Outlook: Bullish Reversal Breakout Next

From a technical viewpoint, PEPE is painting a classic bullish reversal pattern. Dubbed Inverse Head-and-Shoulders (IH&S), the pattern develops when the price forms three troughs, with the middle trough, called the “head,” deeper than the other two, called the left and right shoulders.

In a perfect scenario, the IH&S pattern resolves when the price breaks above its neckline resistance while accompanying rising trading volumes. In doing so, the price typically rises by as much as the maximum distance between the deepest head point and the neckline.

As of July 25, PEPE’s price was forming the right shoulder, awaiting a breakout above its neckline resistance of around $0.00001320. Should the price move decisively above the neckline, PEPE will likely rise toward $0.00002241 by the end of Q3 2024, amounting to circa 80% gains when measured from the current price levels.

Interestingly, the IH&S upside target coincides with the upper trendline of PEPE’s prevailing ascending parallel channel. Additionally, the memecoin’s daily relative strength index (RSI) is hovering around 57, suggesting its price has more room to grow until at least the RSI hits the overbought threshold of 70.

PEPE Volumes Are Better Than Closest Rival Shiba Inu

As of July 25, PEPE’s daily average volume so far in 2024 was $742 million, totaling $153 billion, the second-highest in the memecoin sector after Dogecoin (DOGE).

PEPE vs SHIB memecoin volumes. Source: MessariIn comparison, Shiba Inu (SHIB) markets did $614 million worth of daily average volumes in the same period, netting about $127 billion. Meanwhile, the total number of holders in the PEPE and SHIB markets has increased, though at different rates.

PEPE’s holder count rose to 264,620 from 155,170 at the beginning of the year, marking a substantial 70% growth in adoption.

In contrast, the SHIB market has experienced a modest 2.2% increase, with the holder count reaching 1.4 million as of July 2.

Notably, PEPE has surged by approximately 777% year-to-date, significantly outpacing SHIB’s 60% return over the same period. Additionally, PEPE’s market capitalization stands at about $5.20 billion, compared to SHIB’s $10.10 billion valuation.

The data suggests a potential shift in the memecoin market dynamics, with PEPE gaining significant traction and potentially challenging SHIB’s dominance in terms of volume, holder count, and market capitalization. If this trend persists, PEPE’s market cap could rise further, potentially narrowing the gap with SHIB.