TLDR
- PEPE has formed an inverse head and shoulders pattern suggesting a potential 40% price upswing
- Coin has already bounced 35% from yearly lows, currently trading at $0.000007181
- Analysts like Ali Martinez and CryptoELITES predict significant gains with targets of up to 40X
- Centralized exchange outflows have increased by 1.21%, indicating investors are moving to self-custody
- Technical indicators show bullish patterns including double-bottom formation and falling wedge pattern
The frog-themed meme coin PEPE has been showing signs of a potential bullish breakout according to multiple technical patterns and analyst predictions. After experiencing a 30% monthly decline, PEPE has rebounded strongly with a 22% gain over the past week, currently trading at $0.000007181.
Several prominent crypto analysts have recently highlighted bullish formations on PEPE’s price charts. Ali Martinez identified an inverse head and shoulders pattern on the hourly chart that has been developing since early March. This pattern features a neckline resistance at $0.0000075.
PEPE briefly broke above this resistance level during recent trading, hitting an intraday high of $0.000007582. The inverse head and shoulders pattern is widely recognized as a signal that suggests a potential reversal from a downtrend to an uptrend.
Analyst CryptoELITES claims that PEPE has already confirmed a bottom at $0.0000069834. The current price represents a notable recovery from this level, with the token up 6% in the last 24 hours alone.
Another analyst known as World of Charts has added to the market optimism. They also identified the inverse head and shoulders pattern and predicted a possible 50-60% rally following a successful breakout from resistance levels near $0.000007.
$Pepe #Pepe Breaking Crucial Area, Expecting 50-60% Bullish Rally After Successful Breakout. pic.twitter.com/KcwEvHRRuX
— World Of Charts (@WorldOfCharts1) March 17, 2025
The daily chart shows PEPE has formed a double-bottom pattern at $0.00005920. This pattern consists of two down peaks and a neckline at $0.00002827, which is considered one of the strongest bullish reversal formations in technical analysis.
Technical Analysis
Technical indicators are aligning with these bullish patterns. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) have formed a bullish divergence. This occurs when an asset’s price is falling while oscillators are rising.
PEPE has also formed a falling wedge pattern on the charts. This setup, defined by two descending and converging trendlines, typically suggests that the coin could experience a bullish breakout in the coming days.
Data from Nansen shows increasing exchange outflows, with tokens held on exchanges dropping to 240.15 trillion, down 1.21% from last week. These outflows are generally seen as a positive sign since they suggest investors are holding rather than selling.
Market interest in PEPE appears to be growing. Coinglass data shows the crypto’s futures open interest rose by over 8% to $237.90 million recently. Additionally, derivatives volume increased by nearly 16% to $627.05 million.
The initial price target for PEPE is the psychological level at $0.000010. Some analysts believe a break above that could push the coin toward $0.00001457, its lowest swing on December 20.
However, traders should note that a drop below the year-to-date low of $0.0000053 would invalidate the bullish outlook. This level serves as a key support that bulls need to defend to maintain the positive momentum.
The renewed interest in PEPE comes amid a general recovery sentiment in the crypto market. This optimism is brewing right ahead of the U.S. Federal Open Market Committee (FOMC) meeting, which often impacts market direction.
PEPE’s market capitalization currently stands at $2.9 billion, reflecting its 35% recovery from yearly lows. If the technical patterns play out as analysts predict, this figure could rise substantially in the coming weeks.
The current price action and technical setup suggest PEPE may be preparing for its next leg up in the ongoing crypto market cycle. Traders and investors will be closely watching key resistance levels to confirm the breakout thesis.
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