A widely followed cryptocurrency analyst believes that Dogecoin (DOGE) competitor Pepe (PEPE) is preparing for a major bull run.

Kaleo says that PEPE is likely preparing for a parabolic price rally to levels last seen in May of this year.

But before the price explodes, Kaleo thinks PEPE will quickly drop to retest the high timeframe cross resistance as support.

“It seems like the more appropriate path at this point is to go down a bit before going up.”

Looking at the chart, the trader seems to predict that Pepe will fall to around $0.0000011 before spiking at around $0.0000019.

Kaleo's prediction appears to stem from a similar market structure he saw on PEPE's five-minute chart, where the altcoin broke through diagonal resistance before skyrocketing parabolically.

At the time of writing, PEPE is worth $0.00000134.

As for Dogecoin, Kaleo predicts that the leading memecoin will outperform Bitcoin (DOGE/BTC) in the coming weeks.

“DOGE still looks nice, pretty solid.”

Based on the chart, it appears Kaleo sees DOGE/BTC surging above 0.000004 BTC ($0.12) by the end of the month. At the time of writing, the pair is trading at 0.00000259 BTC.

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