Pepe coin price held steady on Monday as centralized exchange outflows rose after forming several bullish patterns.
Pepe (PEPE) rose to $0.000070, up by about 35% from its lowest level this year, giving it a market cap of $2.9 billion.
Data from Nansen shows that many investors are moving their tokens from exchanges to self-custody. Tokens held on exchanges dropped to 240.15 trillion, down 1.21% from last week.
Increased exchange outflows are generally seen as a positive sign since they suggest that investors are holding onto their coins rather than selling. Exchange outflows often slow during a strong downward trend as investors panic and sell off their holdings.
Technicals suggest that Pepe price may soon surge. The four-hour chart below shows that it has formed a small inverse head and shoulders pattern. This pattern’s head is at this month’s low of $0.000005245, while the neckline is at $0.000007415.
An inverse H&S is a bullish signal. A move above the neckline could lead to further gains, with the next key resistance at $0.000008915 — the highest swing on March 2.
Pepe coin price formed a bullish divergence
The daily chart shows that Pepe has also formed a double-bottom pattern at $0.00005920. This pattern consists of two down peaks and a neckline at $0.00002827, one of the most bullish reversal formations in technical analysis.
The Relative Strength Index and the MACD indicators have formed a bullish divergence. This occurs when an asset’s price is falling while oscillators are rising — a sign that momentum is turning positive.
Pepe has also formed a falling wedge pattern, defined by two descending and converging trendlines. This setup suggests that the coin could experience a bullish breakout in the coming days.
The initial target will be the psychological level at $0.000010. A break above that could push Pepe toward $0.00001457, its lowest swing on December 20. However, a drop below the year-to-date low of $0.0000053 would invalidate the bullish outlook.
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