Amid prevailing market uncertainty, the Pepe Coin is experiencing significant resistance at the $0.00000145 level, leading to a notable reversal. In the last two weeks, this resistance has caused a 22% drop in this memecoin’s market value, bringing it to a current trading price of $0.00000114. However, analysis of the 4-hour time frame chart reveals this decline as part of a bullish continuation pattern known as the Falling Wedge.
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Will PEPE Price Recovery Continue?
- The formation of a falling wedge pattern could bolster buyers to breach the $0.0000015 barrier
- The $0.000001 stands as a strong support zone for buyers
- The 24-hour trading volume in the Pepe coin is $51 Million, indicating a 12% loss.
Source- Tradingview
From the third week of October to early November, the Pepe Coin price underwent a considerable growth phase, rising from $0.0000006 to $0.00000146, a total increase of 131%. This rally was marked by the formation of three bullish continuation patterns, each suggesting the potential for sustainable recovery.
The first was a pennant pattern around October 10th, leading to a rise to $0.00000136. The second was a bullish flag pattern towards the end of October, propelling the price to $0.00000146.
Currently, the coin is forming a Falling Wedge, which typically indicates a high likelihood of continuing the uptrend. This pattern may cause the price to undergo further correction before a decisive upward breakout.
A successful breakout from this pattern could significantly increase buying pressure, potentially raising Pepe coin price by 25% to revisit its last swing high of $0.00000146.
Key Levels to Watch
As of now, Pepe Coin is trading at $0.00000112, having recently dropped below the 38.2% Fibonacci retracement level. If the correction continues, the coin’s price might fall to the next support zone around $0.000001, coinciding with the 50% Fibonacci level. Maintaining above this level would keep the bullish sentiment intact, presenting a good chance for an upward trend continuation. However, a drop below this level would indicate a weakening in bullish momentum.
- Bollinger Bands: The flat upper boundary of the Bollinger Bands may act as an additional resistance zone, challenging upward price movements.
- Vortex Indicator: The converging slopes of the VI+ and VI- lines, nearing a negative crossover, suggest a potential acceleration in selling momentum.
