Pepe Coin Price Signals 30% Rally with Wedge Pattern in Play
Pepe coin price saw a 2.3% jump during Monday’s session as the crypto market experienced a relief rally. As Bitcoin attempts to reclaim $60,000, the volatile meme cryptocurrency sector, including Pepe, shows significant growth. Will this recovery continue, or are sellers waiting for a counterattack?
PEPE Coin Price Nearing a Crucial Breakout
For the past two weeks, the Pepe coin price showcased a sideway action resonating between the $0.000009 resistance and the lower trendline of the wedge pattern. A recent bearish reversal from overhead resistance plunged the asset by 18% to trade at $0.0000074. Consecutively, the market cap fell to $3.16 Billion.
The wedge pattern consists of two converging trendlines that indicate a prevailing trend’s losing momentum. The trendline as dynamic resistance and support leads the price to a narrow apex before a decisive breakout for the next directional rally.
Moreover, the Pepe coin has experienced a notable surge in Open Interest over the past week. Data from Coinglass reveals that Open Interest jumped from $63 million to $92 million, marking a significant increase of 46%.
This sharp rise in OI suggests growing investor interest and increased participation in the market, indicating that traders are positioning themselves for potential volatility or upcoming price movements.
If the selling pressure resumes, the PEPE price may plunge 15% to seek support at the lower trendline. Previously, a reversal from this support led to a 72% rally to hit $0.000013 in late July, indicating a high accumulation zone for buyers.
If history repeats, the PEPE price will rally 30% to $0.0000098 to challenge the resistance trendline of the wedge pattern. A bullish breakout from this resistance will signal the end-of-correction trend.
On the contrary note, the coin price trading below the daily Exponential Moving Averages (20, 50, 100, and 200) hints the path to least resistance is down. A potential breakdown from the lower trendline will invalidate the bullish thesis and prolong a downfall to $0.00000463.
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