PEPE price dips 12% but bullish structure forms | Credit: Hameem Sarwar
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Key Takeaways
PEPE has dropped 12%, but a bull flag pattern on the chart suggests the decline could be temporary.
Despite the pattern, bearish pressure remains, with the CMF below zero and a death cross forming.
PEPE’s price is consolidating, and a failure to hold the $0.000010 support could lead to further losses.
The price of the frog-themed meme coin Pepe (PEPE) has fallen 12% in the past 24 hours. However, this dip may not last long.
Analysis of the memecoin reveals a bullish pattern forming, suggesting the current pullback could be part of a healthy consolidation phase. If the setup holds, this correction may simply be laying the groundwork for a fresh move higher.
Here’s what could be next for PEPE’s price.
Flag Formation Keeps PEPE Alive
On the daily chart, PEPE’s price has been trading in a descending channel since May 10. However, this pattern eventually led to the formation of a bull flag.
As seen below, the pattern began with a sharp upswing, with PEPE’s price jumping from $0.0000079 to $0.000015.
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The flag later showed a recent consolidation between $0.000010 and $0.000014. However, mentioning that the breakout from the flag’s upper trendline might not happen quickly is essential.
One reason for this is the Chaikin Money Flow (CMF) position. The CMF reading is below the zero signal line from the image below.
This position indicates rising selling pressure. Should this trend continue, bulls must exercise patience before PEPE’s price exits the current corrective phase.
For that to happen, bulls must defend the support at $0.000010. If successful, the memecoin might be able to breach the overhead resistance around $0.000016.
Regarding the short-term outlook, the meme coin might fail to break out immediately despite the bull flag formation. On the daily chart, the Money Flow Index (MFI) is hovering near the neutral line.
This indicates a balance between buyers and sellers. As such, it might become difficult for PEPE’s price to surge.
Instead, the cryptocurrency might keep swinging sideways. However, traders might need to watch out for the support at $0.000010.
Should bears tug the token below this level, the expected breakout might not happen. In that case, PEPE might see an extended correction.
On the contrary, if buying pressure increases, the memecoin might break above the resistance at $0.000014.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
