For over a week, the Pepe coin price has not witnessed any initiation from buyers or sellers, leading to sideways action in the daily chart. The candlestick with a long wick and tail on either side reflects the indecisive nature of the market. However, a look at the 4-hour chart shows the consolidation is narrowing with two converging trendlines to make a triangular structure. After the August end drop, this triangular setup shows the formation pennant pattern.
Also Read: PEPE Price Prediction: Key Resistance Level to Watch Before Hitting $0.000001
Pennant Pattern Hints PEPE Price Poised for Major Correction
- A downside breakdown from the support trendline will set the prices for a 10% drop
- The coin price trading below the 4-hour chart EMAs(20, 50, 100, and 200) indicate
- The 24-hour trading volume in the Pepe coin is $39 Million, indicating a 23% gain.
Source- Trading
Despite a lurking uncertainty in the crypto market, the PEPE price strictly resonates between the two converging trendlines. With this triangular pattern intact, the coin price may continue to walk laterally for the coming days.
Currently, the frog-themed memecoin trades at $0.00000078, and with an intraday loss of 3.78% it retests the lower trendline. The continuation of the previous downward move is confirmed when the price breaks below the lower trendline of the triangle.
Therefore, the trader’s bearish on Pepecoin can cause a breakdown as an opportunity to short-sell. With this development, the coin price could tumble 10% to retest the $0.0000007 psychological support.
When should you enter Pepe Coin?
The bearish pennant pattern is a continuation pattern found commonly in an established downtrend. Though the formation of this pattern suggests extended downfall, interested traders must for a downside breakdown as a possible upside break will invalidate the selling thesis. Therefore, the range within the triangle can be considered a no-trading zone.
- Average Directional Index: The downsloping ADX slope reflects weakness in bullish momentum.
- Exponential Moving Average: The overhead 50 EMA slope acts as strong resistance to the PEPE price
