Over the past week, Pepe coin price movement has been marked by indecision. Short-body candles and largely sideways action punctuated by significant wick rejection at both ends underscore a market awaiting action.
As highlighted in our previous article, this prolonged consolidation phase led to the emergence of a bearish pennant formation. Typically, this pattern indicates a potential continuation of the previous downtrend.
Breaking the support trend line prepares the Pepe price for an 11 percent decline…
Pepe price may consolidate for a longer time before a clear breakout.
The cryptocurrency price is trading below the 4-hour chart EMAs (20, 50, 100 and 200), indicating that the downtrend is active.
The 24-hour trading volume on Pepe is 34 million dollars, indicating a loss of 18 percent.
At the time of writing, Pepe coin is priced at $0.000000788. Today's move sees the pennant return to its lower bound, recording a modest decline of 1.25 percent. This decline indicates that the current consolidation will continue for at least a few more trading sessions.
However, as the price steadily approaches the top of the pennant, a decisive breakout or crash appears on the horizon. Many analysts may be leaning toward a bearish conclusion for Pepe coin, given the traditional implications of the pattern.
If the price breaks above the pennant's lower trend line, it will mean that the downtrend will be revived. In such a scenario, we could see the altcoin decline by around 11 percent, breaking below the $0.00000075 support and reaching $0.00000070.
Can Pepe price rise to $0.00000091?
Although a downward outcome seems more likely, the decline cannot be said to be certain. For those looking for a safer entry point, it may be prudent to wait for a confirmed breakout from the pennant. The gap between the formation's converging trend lines represents a 'no action zone' for many.
A decisive break above the pennant could eliminate the bearish view and push the altcoin towards the $0.00000091 mark.
Relative Strength Index: Price action making a lower high despite a rising RSI, indicating that buyers' recovery attempts are being undermined.
Bollinger Band: The horizontal movement of Bollinger Band indicators reflects increased market volatility.
