Meme coins like Pepe (PEPE), which is down more than 60% so far this year, have not been spared from the current decline in the larger cryptocurrency market. On the charts, nevertheless, a noteworthy bullish pattern is currently attracting notice. PEPE might be ready for a possible recovery as sentiment improves and technical indicators flash green. At $0.00005782, the PEPE price has increased 6.13% in the past day and is supported by more than $531 million in 24-hour trade volume.
Harmonic Pattern Sets the Stage for a PEPE Comeback
A Bearish Gartley harmonic pattern is currently unfolding on the PEPE daily chart, a technical structure that typically predicts a bullish rally toward a specific resistance point before a possible trend reversal. This pattern has historically been reliable in signaling short-term upside potential in volatile assets like meme coins, particularly within the cryptocurrency market.
PEPE price action began its major downward trajectory on February 14 after failing to hold above the $0.00001075 resistance level, marked as point X in the pattern. The coin declined to a low of approximately $0.0000052 by March 10 (point A). After a brief consolidation, PEPE bounced off $0.000005722 (point C) and has since climbed steadily. It now trades around $0.00005782, signaling the formation of the final CD leg of the Gartley setup.
This structure suggests that if the pattern plays out, the token could reach point D at $0.00000958, aligning with the 78.6% Fibonacci retracement of the X-A leg. This implies a potential 25% gain from current levels, provided the bullish momentum remains intact.
Massive Volume and MACD Crossover: Is PEPE Ready to Explode?
The fact that PEPE’s trading volume increased by 55.87% to $531.48 million in the last day suggests that investor interest has resumed. The coin is now ranked #29 out of all cryptocurrencies with a $3.29 billion market cap and 420.68 trillion tokens in circulation. In addition to increasing the coin’s volatility, this volume spike supports the idea that short-term profits are possible as the pattern nears completion.
The Relative Strength Index (RSI) has remained around neutral zones. This allows for upward movement without indicating overbought conditions. The Moving Average Convergence Divergence (MACD) also indicates signs of a bullish crossover. This could further increase buying activity in the near term.
However, it’s important to consider the resistance level at $0.00000958. Here, the D-point of the Gartley pattern completes. Historically, PEPE price action tends to reverse shortly after reaching this zone. This makes it a potential area of heightened risk. On the downside, $0.00000737 (the 38.2% Fibonacci level) is acting as immediate support.
Can PEPE Price Break Past $0.00000958?
So, the question is, can PEPE price break past $0.00000958? Should the bullish scenario materialize, PEPE could continue its rally toward $0.00000958. Beyond that level, a breakout or rejection will determine its mid-term trajectory. Traders should keep an eye on the token’s behavior around support zones like $0.00000737 and $0.0000068. A sustained rally above $0.00000958 could shift sentiment and set a new bullish trend. Otherwise, PEPE might enter a consolidation phase.
What’s Next: Critical Test Ahead for PEPE Bulls
While PEPE is showing signs of recovery with strong technical backing and surging volume, the completion of the harmonic pattern will be a crucial test. Bulls eye a 25% potential upside, but caution remains key as the coin approaches major resistance. With improving community sentiment and a clear technical roadmap, PEPE’s rebound could be just beginning, but volatility will still exist.
Source: Coinfomania / Digpu NewsTex