PEPE nears breakout? A bullish pattern is set in motion

  • PEPE’s price increased by more than 3% in the last seven days. 
  • The meme coin might face resistance at $0.0000092 before retesting its ATH.

Pepe [PEPE] might once again come into the spotlight, as it was fast approaching its all-time high.

In fact, a bullish pattern had formed on its chart, which indicated that the meme coin to go further above its ATH was high. Let’s take a closer look at what’s going on. 

PEPE is on the right track

AMBCrypto reported earlier that PEPE was heading towards its ATH to retest that level. The trend continued as the meme coin came closer to testing its ATH.

In fact, Crypto Tony, a popular crypto analyst, also pointed out this development in a recent tweet.

As the meme coin was on track to test its ATH, its price increased by more than 3.6% in the last seven days.

At the time of writing, the meme coin was trading at $0.000008732 with a market capitalization of over $3.67 billion.

The possibility of PEPE going above its ATH seemed likely to happen in the coming days as a bullish ascending triangle pattern emerged.

The meme coin’s price has started to consolidate inside the bull pattern since the 1st of April. At press time, it was on the verge of breaking out of the pattern. A few of the metrics suggested a successful breakout.

A bullish pattern formed on PEPE's chart

Source: TradingView

For example, PEPE’s price remained above its 20-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) also registered an uptick, hinting at a continued price increase.

However, a few of the indicators suggest otherwise. The Chaikin Money Flow (CMF) registered a sharp decline.

The Money Flow Index (MFI) also, after a comfortable rise, went down slightly, which might restrict PEPE from breaking above the pattern. 

What metrics suggest

AMBCrypto then analyzed Santiment’s data to see whether metrics supported the possibility of PEPE breaking above the pattern. We found that PEPE’s MVRV ratio remained positive last week.

At press time, the metric had a value of nearly 15%. However, the meme coin’s open interest dropped.

Additionally, sentiment around PEPE started to turn bearish, as evident from the decline in its Weighted Sentiment. 

PEPE's weighted sentiment droppedPEPE's weighted sentiment dropped

Source: Santiment

Is your portfolio green? Check out the PEPE Profit Calculator    

AMBCrypto then checked Hyblock Capital’s data to find out if there were any roadblocks for the meme coin ahead of its ATH. As per our analysis, PEPE’s liquidation would rise sharply near $0.0000092.

A rise in liquidation often results in a price correction. Therefore, it will be crucial for the meme coin to go above that level in order to test its ATH and possibly go above it.

Screenshot 2024 05 12 at 4.22.33 PMScreenshot 2024 05 12 at 4.22.33 PM

Source: Hyblock Capital

Next: Polkadot: THIS signals worrying signs for DOT – What should you do?

Source link

About The Author

Scroll to Top