Pepe Coin (PEPE) Rally Falters But Bullish Cues Persist Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— Pepe coin price’s recovery rally failed to take off due to the bearish sentiment in the wider crypto market. However, the token still has some bullish cues that could help PEPE price start a bull run.
Market sentiment for the memecoin seems to be turning positive. According to data from Coinglass, the open interest for Pepe coin futures started rising on Aug. 12, along with a corresponding recovery in PEPE’s funding rate.
PEPE futures open interest. Source: Coinglass
Moreover, the PEPE USD pair forming a bullish setup would likely attract more buyers to the market, likely boosting bullish sentiment for the token.
PEPE Price Paints A Bullish Pattern
The Pepe coin price has formed a bullish technical setup called the ‘falling wedge.’
PEPEUSD formed a bullish pattern with an 186% upside target. Source: Tradingview
The pattern typically indicates that an asset’s price, while in a downtrend, is losing bearish momentum and may be poised for an upward reversal. In the case of a falling wedge, the expected breakout generally follows the prevailing trend, which, in this scenario, is upward.
To estimate the price target for a falling wedge, traders typically measure the widest part of the wedge at its inception. This distance is then projected upward from the breakout point, establishing a potential price target.
A surge in trading volume accompanying the breakout often confirms its validity. Higher volume suggests stronger market conviction, increasing the probability of a sustained price reversal.
Applying these principles to the PEPE/USD pair, technical analysis suggests a potential rally of up to 186% from the current price level, targeting a theoretical price near $0.0000229. A rally to the upper trendline of the pattern would likely attract more buyers as market participants anticipate a bullish breakout.
PEPE USD Falters Near 200-EMA
The PEPE USD pair failed to overcome the 200-day EMA (green wave) dynamic resistance, forcing the token to drop nearly 4% on Aug. 13 to reach a daily low near $0.0000079. Breaking above the EMA trendline could bolster confidence in the token’s price rally.
PEPEUSD daily price chart with RSI.
Hence, if PEPE price starts an uptrend, the memecoin would likely face resistance near $0.0000094, flipping which would help the PEPE USD pair target the resistance near $0.000011.
However, if the token fails to start a rally, PEPE price risks a drop to the support near $0.00000722. Failure of immediate support might force the token to test the support level near $0.0000061 before recovering.
The relative strength index for PEPE remained neutral, with a score of 39.97 on the daily charts.
The post Pepe Coin (PEPE) Rally Falters But Bullish Cues Keep Hopes Alive appeared first on CoinChapter.
