Pepe coin price is currently consolidating near the support trendline of a bullish technical pattern, which could help the memecoin muster some serious gains.
Pepe coin price is currently preparing for a bullish breakout from a key technical pattern, presenting an opportunity for substantial gains. But, some traders, like Crypto Bully, are planning to short the memecoin. Let’s see how this trade idea could play out.
Crypto Bully Plans To Short PEPE As Memecoin Prepares For Bullish Breakout From Falling Wedge Pattern
Pepe coin price has dropped significantly over the past few months, losing over 80% of its value from its all-time high. The memecoin has now found support at a crucial level, forming a bullish technical pattern that could aid PEPE in mustering some serious gains.
However, some traders, like Crypto Bully, are planning to short the memecoin. Let’s see how this trade idea could play out.
Pepe Coin Price Analysis
Pepe coin price has been on a strong downtrend since reaching an all-time high in April. The memecoin lost over 80% of its value during this decline, reaching a low of $0.00000549 on August 14.
Since then, PEPE has recovered slightly and is now trading at $0.0000069. The memecoin has found support at the lower trendline of a falling wedge pattern, which is a bullish technical pattern that often signals an asset’s loss of bearish momentum.
A breakout from this pattern is usually aligned with the prevailing trend, which suggests a likely move upwards for PEPE. To determine the potential price target, traders can measure the wedge’s widest section at its inception and project this distance upward from the breakout point. This projection provides a possible price target.
Moreover, increased trading volume during the breakout often confirms its strength. Higher volume indicates a stronger market conviction, enhancing the likelihood of a sustained reversal.
Applying the principles of technical analysis to the PEPE/USD pair suggests a potential rally of up to 178% from the current level, with a theoretical price target near $0.00002099. Furthermore, a move towards the upper trendline of the pattern could attract more buyers, anticipating a bullish breakout.
On the other hand, the bearish pressure against the token has likely forced PEPE price to consolidate above the wedge pattern’s support trendline. Notably, the memecoin began the new week on a positive note, spiking over 7.5% to reach a daily high near $0.000007702 on Aug. 19 before correcting.
While the bulls are trying to continue the rally on Aug. 20, it seems likely that PEPE price would succumb to the bears. A sustained rally for the token would see PEPE face resistance from its 20-day EMA (red wave) and 200-day EMA (green wave) near $0.00000845.
Breaking above the immediate resistance would help the memecoin target the resistance near $0.00001 before retreating. Conversely, a failed rally would likely force the PEPE USD (and other trading pairs of the token, like the PEPE INR) test the support levels near $0.0000068 and $0.00000586.
The RSI for the token remained neutral, with a score of 40 on the daily charts.
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