PEPE Forms Bullish Pennant After Explosive 60% Rally — Here’s What Next for the Memecoin

Key Takeaways

• PEPE surged 60% over the past 30 days but recently pulled back slightly, suggesting a healthy correction rather than a reversal.
• The daily chart shows a bullish pennant pattern, signaling the potential for continued upward price movement after consolidation.
• The Average Directional Index (ADX) has risen to 46.20, indicating strong bullish momentum for PEPE in the short term.
• If sustained, PEPE’s price could rise to $0.000020 or even $0.000023, but a bearish turn could drop it to $0.000010.

Pepe (PEPE) may have paused its explosive rally from earlier this month.

However, the momentum isn’t gone just yet. Several indicators suggest the memecoin’s price still has room to run.

Over the past 30 days, PEPE has surged by 60%, climbing to a high of $0.000016. However, it recently pulled back to $0.000014.

Despite that, this dip appears to be a healthy correction, as this analysis hints at another breakout.

Pepe’s Chart Shows Bullish Setup

On the daily chart, PEPE’s price has formed a bullish pennant. A bullish pennant is a pattern that appears during a strong uptrend, indicating that the price is likely to continue rising after a brief consolidation period.

As seen below, the pattern forms with a strong flagpole (the initial rally). After that, the pennant comes into shape in the form of a small symmetrical triangle that forms after the flagpole as the price consolidates,

Following this consolidation, PEPE’s volume has dropped. But to validate the breakout to the upside, volume needs to increase. While the volume has started to increase, the Average Directional Index (ADX) reading has also surged.

As seen below, the ADX reading has risen to 46.20, indicating strong directional movement to the upside. If sustained, PEPE bulls might defend the support at $0.000012 while moving to breach the resistance near $0.000017.

PEPE Price Prediction: More Gains Ahead

A look at the PEPE/USD chart also presents a bullish technical setup. Based on the image below, the memecoin is trading within an ascending triangle while forming higher lows.

However, PEPE’s price is yet to break above the neckline of the pattern at $0.000017. But the cryptocurrency might likely surge past the resistance, according to the position of the Awesome Oscillator (AO).

The AO compares historic price movements to recent trends to measure momentum. When the AO reading is positive, momentum is bullish.

On the other hand, when the AO is negative, momentum is bearish. From the chart below, the AO has flipped to the positive region, indicating bullish momentum.

If validated, PEPE’s price might break above the 0.50 Fibonacci level. A successful breakout above this level could send the memecoin’s value to $0.000020 at the 0.382 Fibonacci level.

Should buying pressure increase, the memecoin’s market value could hit $0.000023. However, if momentum around PEPE turns bearish, this prediction might not come to pass.

If that happens, the token could drop below the lower trendline of the bullish pennant. Should that be the case, PEPE’s price might drop to $0.000010.