The majority of major cryptocurrencies showcased notable growth since last week following Bitcoin’s rally to $67000. Surprisingly, the Frog-themed Meme cryptocurrencies PEPE remained sluggish even though this asset class is known as a fast mover in the market. The alternate green and red candles in the daily chart hint lack of initiation from traders, but the formation of a bullish pennant keeps the hope bulls intact. Will Pepe Coin price hold $0.00001 floor?
PEPE Coin Price Aims 40% Surge Amid Pennant Formation
PEPE Coin Price| Tradingview
Amid the July market recovery, the PEPE coin price managed to bottom its last correction at $0.00000763. Interestingly, this horizontal support witnessed additional support from 200D EMA and the lower boundary of the channel pattern.
The resulting reversal pushed the 68% within two weeks to hit a high of $0.000013. Mirroring this price recovery, the Futures Open Interest in Pepe Coin saw a significant increase, rising from $83.6 million to $146.75 million—a 75% jump. This substantial growth suggests increased trader activity and a bullish sentiment towards Pepe Coin’s future market prospects.
PEPE Futures Open Interest| Coinglass
On July 16th, the PEPE coin price breached the channel resistance to restore a high momentum recovery. However, this Frog-themed memecoin has been trading sideways since then despite favorable market conditions.
The consolidation suggests a lack of conviction from buyers and also a pivotal momentum for PEPE traders.
An analysis of the 4-hour chart shows this sideways move as a bullish pennant formation. In theory, this setup hints at a temporary pullback before buyers regain strength for the next leap.
Thus, the 4-hr chase breakout from the resistance trendline will accelerate the bullish momentum and bolster buyers for a 40% surge to target $0.0000017.
On a contrary note, the bearish breakdown from the pennant will also fail the prior channel breakout too, strengthening the seller’s prospect of asset fresh correction, The potential breakdown will push the asset back to the multi-month support of $0.00000763.
Technical Indicator
BB Indicator: The upswing in the upper boundary of the Bollinger Band indicator suggests the buyers hold a firm grip over this asset.
RSI: The daily Relative Strength Index slope wavering at 54% hints at a neutral to bullish sentiment among market participants.
Frequently Asked Questions (FAQs)
Futures Open Interest refers to the total number of outstanding futures contracts that have not been settled. It is a measure of market activity and trader engagement.
If the pennant pattern identification is correct, the PEPE price holds a high possibility of resuming its recovery trend and staying above $0.00001.
bullish pennant formation is a technical analysis pattern that appears after a strong price movement. It consists of a short period of consolidation within converging trendlines, resembling a small symmetrical triangle.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.