Peter Smith
The crypto world loves a good underdog story, and PEPE might just be writing one right now. While most traders are watching this meme coin get absolutely crushed by whale selling, smart money might be missing something big brewing under the surface.
Pepe (PEPE) is setting up for a potential breakout that could send it soaring, even though whales just dumped over 800 billion tokens. The charts are screaming bullish signals while the fundamentals look bearish – and that's exactly the kind of setup that can catch everyone off guard. Here's what traders need to know about this bullish setup.
PEPE Charts Show Classic Breakout Pattern Forming
PEPE was trading at $0.0000095 on Friday, September 5 – that's a brutal 33% drop from its July highs. The meme coin is sitting near its lowest levels since July 25, but the charts are telling a different story.
Here's what's got traders excited: PEPE has carved out a textbook falling wedge pattern. The upper line connects all those higher lows since July 22, while the lower line links up the August and September bottoms. When these lines squeeze together like this, something's gotta give.
The coin bottomed out at $0.000008940, right at the Murrey Math Lines support – that's where rebounds usually happen. If PEPE breaks out of this wedge, it's eyeing a move to $0.00001340. That's a juicy 41% gain from current levels.
Why PEPE Is Pumping Despite Massive Whale Sell-Off
Here's the crazy part: while the charts look bullish, whales are absolutely hammering this thing. Nansen data shows smart money guys cut their stash from 326 billion tokens in August down to 322.2 billion now.
But the real story is with the whale wallets. These big players just unloaded over 800 billion PEPE tokens in the past few days. Their holdings crashed from 8.4 trillion on August 31 to 7.61 trillion today. That's some serious selling pressure.
Usually when whales dump, prices tank. These guys have deep pockets and know what they're doing. But here's the thing – sometimes when the big money exits, it clears the way for a bounce.
What's Next for PEPE Price Action?
The setup here is pretty wild. You've got bearish whale activity going head-to-head with bullish chart patterns. The weak jobs data might actually help crypto bounce back, and if that happens, meme coins like PEPE usually run hard.
PEPE's futures open interest is staying steady too, which means people are still interested in trading this thing despite the recent beatdown.
If PEPE can break above that wedge with some volume, we could see that run to $0.00001340. But if the whale selling continues and the broader crypto market stays weak, this could get uglier before it gets better.
Peter Smith
