PEPE Coin Price Poised for a 40% Rise as Pennant Forms
Amid the market recovery in July, PEPE Coin price managed to bottom out at the bottom of the last correction at $0.00000763. Interestingly, this horizontal support level was supported by the 200D EMA and the inner border of the channel pattern.
The resulting reversal pushed the 68% gain in two weeks to a high of $0.000013. In line with the price recovery, Pepe Coin’s futures open interest increased significantly, from $83.6 million to $146.75 million, a 75% increase. This substantial growth indicates increased trader activity and optimism about Pepe Coin’s future market prospects.
On July 16, PEPE Coin price broke through the channel resistance and resumed its rally from highs. However, despite favorable market conditions, the frog-themed memecoin has been trading sideways since then.
The 4-hour chart analysis shows that this sideways movement is in the form of a bullish pennant. Theoretically, this formation suggests a temporary pullback before buyers regain strength for the next up move.
Therefore, a 4-hour chasing breakout from the resistance trendline will accelerate the bullish momentum and support buyers to move up 40% to the target of $0.0000017.
On the contrary, a bearish breakout from the pennant pattern will also fail the previous channel breakout, thus strengthening the prospects of sellers for a new correction in the asset, and a potential breakout will push the asset back to the multi-month support level of $0.00000763.
All in all, the PEPE token price surged 68% to $0.000013 and the futures open interest climbed 75% to $146.75 million amid the market recovery in July, indicating high bullish sentiment. The current market dynamics are favorable for PEPE and other memecoins that are highly correlated with ETH. When the spot ETH ETF starts trading, they are expected to rebound in the near future.
