Pepe, the third-largest meme coin, has been experiencing a significant downturn since December, with its price plummeting by over 80% this month. However, despite this bearish trend, two chart patterns are indicating a potential major breakout for Pepe in the near future.
The first pattern that has emerged is a falling wedge on the daily chart. This pattern is a popular reversal pattern that consists of two descending and converging trendlines. The upper trendline connects the highest swings since December, while the lower trendline connects the lower lows since November of the previous year. Additionally, Pepe’s price has also formed a double bottom pattern at $0.0000060, with a neckline at $0.00002830, representing its all-time high.
Technical indicators suggest that Pepe may be on the verge of a strong bullish breakout. The Relative Strength Index has been rising and has recently crossed a descending trendline, indicating a bullish crossover pattern. If this breakout occurs, the next target for Pepe’s price could be at $0.00002095, which is approximately 220% above the current level.
However, it is important to note that a bearish breakout below the key support level at $0.000002980 could invalidate the bullish view for Pepe’s price.
In addition to the technical analysis, there are several potential catalysts that could push Pepe’s price higher in the coming weeks. Firstly, the US recently published encouraging consumer inflation data, which showed a decrease in both headline and core inflation rates. Secondly, Pepe’s futures open interest has been rising, reaching its highest level since March 7. Historically, significant price gains have occurred when open interest is low. Lastly, astrology analysts are predicting that the ongoing crypto sell-off may come to an end this week with the occurrence of a lunar eclipse.
Overall, the combination of technical analysis and potential catalysts suggests that Pepe may be gearing up for a major breakout in the near future. Traders and investors will be closely watching to see if these patterns and factors play out as expected.