PEPE, the popular new memecoin that has everyone buzzing, is looking primed for a breakout. It’s powered by a combination of bullish technical indicators, increased whale accumulation, and extremely passionate community. The cryptocurrency’s recent rally has sent traders and analysts alike scurrying to monitor its rising progress. For instance, PEPE recently shown a cup-and-handle pattern, a signature bullish pattern foreshadowing a potential explosion in price. Only an authoritative close above $0.000009 will do. Doing so would confirm a breakout above a $0.000015 target, a 60% climb from prevailing levels.

PEPE’s past successes have always been directly linked to its community, and recently shared activity has pointed to community enthusiasm. In late May, the token’s 24-hour trading volume jumped to $1.4 billion. That stunning peak represented a 30% gain from the bottoms seen in early 2025. This record spike in trading activity foreshadowed the heightened activity, interest and participation from retail as well as institutional investors.

Technical Indicators Point to Upside Potential

Since 2025, PEPE’s price action has mirrored a classic bull flag pattern, creating an even stronger bullish thesis. Most recently in late March, a golden cross formed. That’s when the 50-day moving average crossed over the 200-day moving average in what’s known as a death cross of short-term weakness giving way to long-term uptrend.

PEPE’s Relative Strength Index (RSI) is firmly in neutral territory, fluttering between 45 and 55. This means that the token is currently not in an overbought or oversold territory, indicating potential space for bullish action. With all of these bullish technical indicators converging, PEPE could be on the verge of its next big rally.

The most favorable entry point for purchasing PEPE would be around the $0.000008 support area. Traders are looking for a breakout above $0.000009, which is the cup-and-handle neckline. The short term goal is just $0.000015. Our ultimate, longer-term target is $0.000019, a level that would completely retest the highs we experienced in January.

Whale Activity Signals Confidence

Since January, PEPE’s big whales have been on a purchasing binge. They’ve upped their stakes by a staggering 24 trillion tokens, or 20%, bringing their total holdings up to 144.6 trillion by May. Such a buy-up by whales, or big investors, usually indicates strong confidence in a token’s long-term prospects.

Pumping the bullish sentiment further, a crypto whale cashed out 500 billion PEPE—worth $4.36 million—in one Binance withdrawal in April. Large net withdrawals from exchanges tend to suggest that investors are switching their tokens into cold storage, suggesting a long-term investment strategy. This removes downward pressure from future supply, making cuts worse by increasing prices.

Even after PEPE’s phenomenal runup it has a market capitalization of over $5.4 billion. Its chief competitor Shiba Inu has regained the lead with a market cap of $7.5 billion. PEPE can do much more than it has already done. It can do so by drawing in fresh capital and maintaining a diverse, active investor community.

Risk Management and Potential Downside

Although the future looks bright for PEPE, you must be wary of the risks involved. After crashing by 50% in early 2025, the token recovered to then soar by 40% in May of that year to prove its volatile nature.

A breach below the critical support level at $0.000007 would signal a return to the lows seen in early 2025. There is great potential, but investors need to be on their toes. They need to adopt rigorous risk management practices, such as establishing stop-loss orders, to protect their capital.