Memecoins had a strong November as risk-on sentiment in the cryptocurrency industry grew. Pepe Coin’s price was one of the best performers, more than doubling in value. So, how high can the third-largest memecoin go in December?
Pepe Coin price has positive technicals
Technical analysis of the Pepe Coin price shows that it has now fallen for two consecutive weeks and could potentially rebound. The coin formed a cup with handle pattern between May and November this year.
The C&H pattern forms when an asset forms a rounding bottom. In this case, the upper side of this cup is $0.00001717, which was broken on November 13. Ideally, when this breakout occurs, traders estimate the next target by measuring the depth of the cup. The depth is about 65%. Therefore, if we measure 65% from $0.00001717, we estimate that the coin will bounce to $0.000028.
Pepe price has formed two other bullish patterns. First, it has formed a falling wedge pattern, which has two descending and converging trendlines. This pattern usually results in a strong bullish breakout when the two lines are about to converge.
Secondly, the Pepe Coin price formed a breakout and retest pattern. This pattern forms when an asset breaks above a key resistance point (in this case, $0.00001717) and then retests it. It retested on November 26 and formed a Morning Star candlestick.
Therefore, the combination of these patterns and the fact that it has been holding above the 50-day moving average means that the coin will rebound in December and could reach the C&H target of $0.000028. However, this view will become invalid if the coin drops below $0.000016, i.e. a few points below the upper side of the cup.
Pepe may be in accumulation mode
Most of the cryptocurrency analysts following the coin are bullish and expect it to stage a strong rebound. In an X post, Wyckoff Insider noted that the coin is in a re-accumulation phase. Therefore, he expects that the final phase of the bull run has just begun.
The Wyckoff Method is an ancient method that identifies four phases of market behavior: accumulation, rallies, distribution, and declines. During the accumulation phase, there is little price action on an asset, while the rallies are typically the most bullish segments.
Another bullish reason for Pepe is that it remains one of the most traded meme coins. On November 28, its 24-hour trading volume was $4 billion, second only to Dogecoin. There are also signs that whales are hoarding Pepe coins.
