Will Pepe Coin Price Break Key Resistance for a 170% Rally to $0.00002649?

Key Insights:

• PEPE coin price targets a 170% rally to $0.00002649.
• Wave structure points to a potential breakout above $0.00002649.
• PEPE gains momentum as 200-day EMA and 61.80% Fib support a breakout.

Pepe Coin (PEPE) price is gaining significant momentum, driven by a series of bullish technical signals and strong on-chain metrics. The meme coin price recently surged nearly 7% to hit $0.00001453, extending its 68% rally from the previous week. This breakout has enabled PEPE price to clear key resistance levels, charting a potential 170% rallying path to $0.00002649.

Pepe Coin Price Rounding Bottom Breakout Signals Bullish Reversal

PEPE’s daily chart showed a clear rounding bottom formation, a classic bullish reversal pattern. Such a structure tends to occur when an asset changes its direction from bearish to bullish, which forms a rounded base that reflects increased buyer demand.

This pattern has been created in PEPE above the $0.0000050 support area since the price has now moved past the $0.00001426 – 61.80% Fibonacci retracement point.

A breakout above the 61.80% level is significant as it confirms the rounding bottom pattern. This pattern’s target is estimated by adding the depth of the break to the breakout point, suggesting a potential rally to $0.00002649. The assessment suggests a potential 170% rise from current levels, aligning with the 100% Fibonacci extension.

Additionally, the 200-day EMA is also supportive, while the 50 and 100 day EMAs show early positive crossover indications. The bullish prediction, which implies that the breakout may lead to a higher extent of an upward movement, received emphasis from the crossing of key moving averages.

Pepe Coin Wave Structure Hints at Larger Upside

Furthermore, Crypto Patel recently highlighted a detailed wave structure for PEPE, suggesting that the meme coin could be in the early stages of a major bullish phase. The chart revealed a series of Elliott Wave formations, with PEPE currently in the early part of a potential fifth wave. This wave structure is significant because it often precedes the most aggressive phase of a rally.

According to this analysis, PEPE price has completed its corrective wave (C) and will begin rallying as it moves into the impulse wave (5). The target forecasted for this wave should be around $0.00002649 and agrees with the 100% Fibonacci extension calculation.

Besides, the chart’s fractal repetition indicated PEPE prices following historical trends, suggesting that further upward movement can happen. If this trend is maintained, PEPE price stands capable of achieving higher prices in the future, with predictions indicating it may go above $0.000060.

On-Chain Data and Volume Support Bullish Case for PEPE

On-chain metrics further supported the bullish outlook for PEPE. PEPE’s spot market inflows have surged, reflecting strong buying interest. According to data from Coinglass, PEPE futures seem bound for breaching the $600 million Open Interest, indicative of increased leverage participation.

As the OI reaches its peaks, it coincides with the current breakout, suggesting traders are likely to remain bullish. In addition, the liquidation of $1.14m in short positions in four hours revealed the high level of optimism on PEPE. These liquidations can trigger a feedback loop, where short sellers cover their positions by buying back the asset, further driving up the price.

Moreover, Coinglass data revealed a net inflow of $10.52 million into PEPE spot markets on May 12, followed by an $18.55 million inflow last week. Despite this supply spike, buyers have absorbed the selling pressure, signaling strong underlying demand.

Key Resistance Levels and Potential Targets

With several bullish indicators aligning, market players are closely following upcoming key resistance zones. Analysts are paying keen attention to the resistance at the 78.60% Fibonacci of $0.00001870 and the resistance at the 100% extension of $0.00002649. If these resistance points are broken, it may result in an environment for a larger shift towards the $0.000060.

If the meme coin price fails to hold above $0.00001426 at the 61.80%, it may trigger a retracement and push the price downward to $0.000010 at the 38.20% Fibonacci. Such a level represents an important support region, and if the price breaks down from this, it can squash the current bullish trend.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.