The price of Pepecoin (PEPE) recently broke through a key resistance level and showed upward momentum as some analysts speculated that Elon Musk might be secretly buying the token.
Will Elon Musk drive up PEPE prices?
Some crypto analysts have pointed out that Musk’s social media activity seems to support the token. For example, analyst Chandler Bing mentioned in a post on X that Musk’s behavior is similar to what he did for Dogecoin in 2020, when he indirectly pushed up the price of DOGE by liking and forwarding related memes, eventually sending it to a record high in 2021.
Recently, his appointment as "DOGE" has also triggered market associations, leading to a brief rise in Bitcoin.
However, Musk has not publicly expressed his support for PEPE. He has previously made it clear that his crypto asset portfolio only includes Bitcoin and Dogecoin. Therefore, these speculations about his support for PEPE are still speculation and there is no solid evidence.
Even so, if Musk expresses support for PEPE in the future, considering his influence and large follower base, this may greatly boost the value of PEPE, or even show explosive growth. Similar phenomena have previously appeared in Musk-related tokens such as Dogelon Mars.
Technical analysis of PEPE
From a technical perspective, PEPE is showing strong upward momentum. As previously predicted, the token is very likely to rise further and challenge its historical high.
Crypto analyst Jameson pointed out in an X post that PEPE has broken through the key resistance level on the two-hour candlestick chart. He believes that this technical signal indicates that PEPE may rise rapidly in the short term and is expected to set a new high.
PEPE currently has one of the best daily charts in the crypto space. From a technical perspective, it is performing particularly well.
As shown in the chart, the price of PEPE recently jumped to the key resistance level of $0.00001717, which is the upper edge of the cup-with-handle pattern. The cup-with-handle pattern is a classic bullish continuation signal in technical analysis, suggesting that prices may rise further.
In addition, PEPE’s price is well above its 50-day and 100-day moving averages, indicating that its overall trend is in a strong phase.
More notably, PEPE has formed a blue bullish pennant pattern. This pattern usually occurs when an asset enters a brief consolidation phase after a parabolic rise.
Currently, PEPE's bullish triangle pattern is approaching a confluence point, which usually indicates an imminent breakout. If this happens, PEPE's first target price would be the all-time high of $0.000025, which is about 20% higher than the current price. In a more optimistic scenario, by measuring the upper and lower ranges of the cup and handle pattern (C&H), its final target price can be calculated to be $0.000049.
However, there are risks in the market. This bullish outlook will be shattered if the price falls below the key psychological support level of $0.000015, which could trigger further downward pressure.
