Pepe Coin Rally Has Stalled: Implications for Investors

Pepe Coin price has lost momentum for two main reasons. First, it is common for an asset's price to pause after experiencing a strong surge.

The price of Pepe (PEPE) has lost momentum in recent days, after a strong rally that saw it surge by 170% from its lowest point earlier this year.

At the lowest point of the bear market, which was reached on February 24, 2023, amidst the market turmoil, the price of Pepe touched $0.00000519.

However, the impressive rally that followed, propelled it to a high of $0.00002838 in December last year, before it stalled.

Why Has Pepe Price Stalled?

The fact that Pepe price has stalled is no surprise for two main reasons.

Firstly, it is common for an asset’s price to pause after experiencing a strong surge. In this case, Pepe was up by 170% from its lowest point earlier this year.

The pause usually occurs as some investors take profits, while others may decide to hold onto their investments for further gains.

Secondly, Pepe has stalled, mirroring the performance of other large cryptocurrencies. Bitcoin, which usually sets the tone in the crypto industry, has stalled at $104,000.

Similarly, Ethereum price has remained steady at $2,600.

On a positive note, analysts are optimistic that Bitcoin has more upside ahead, which could lead to increased demand for meme coins like Pepe.

BlackRock has set a target of $700,000, while Cathie Wood believes Bitcoin will eventually jump to $1.2 million.

If these forecasts hold true, it could mean that Pepe Coin price may resume its bull run in the coming days.

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Pepe Coin Price Analysis

Despite the pause, Pepe remains among the most actively traded meme coins in the crypto market. Its 24-hour volume was $1.6 billion, surpassing Shiba Inu's $441 million and Official Trump's $1.27 billion.

Its futures open interest has also continued to rise, which is another indication of strong demand for the meme coin.

The daily chart shows that Pepe is now forming a double-bottom pattern, which was touched in March this year and August last year at the price of $0.00000577. This pattern has a neckline at $0.00002838, which was the high reached in December last year.

Moreover, Pepe has pulled away from the 50-day and 200-day moving averages, and the spread of the two lines is narrowing, which could lead to the formation of a golden cross technical pattern. A golden cross usually occurs when the short-term average crosses above the long-term average, which is a bullish signal that tends to precede an uptrend in price.

In addition, Pepe Coin is likely forming a bullish pennant or flag pattern. It has already completed the formation of the flagpole pattern, and the price is currently testing the 61.8% Fibonacci Retracement level from the last leg of the rally.

Therefore, the implication is that Pepe Coin price is likely to experience a strong bullish breakout from here, with the initial target at $0.000020, which is 45% above the current level. This price also coincides with the 38.2% Fibonacci Retracement point.

On the other hand, a move below the support at $0.000012 will invalidate the bullish outlook.

News data source: kdj.com

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