Over the past two weeks, the price of Pepe coin has been trading within a narrow range, following a pause in its previous upward trend. However, cryptocurrency analysts are expressing optimism about a potential new rally, with the Reddit Army playing a significant role.
The likelihood of increased activity in the Pepe coin market has risen after a popular Reddit channel hinted at a possible pump. A post in the Pepecryptocurrency channel announced that users would purchase Pepe coins at noon EST on December 3. This is significant considering the Subreddit has over 18,000 members. The anticipated pump comes as crypto analysts had predicted that the coin was on the verge of a strong bullish breakout. In a post on X, well-known crypto expert Chandler Bing pointed out that the coin had formed a falling wedge, signaling an impending strong rally.
Examining the daily chart, we observe that Pepe coin reached a high of $0.000025 in November before pulling back to $0.00001728. The latter level is crucial as it represents the upper boundary of a cup and handle pattern that formed between May 2024 and November of this year. A cup and handle pattern occurs when an asset rises to a key resistance, declines gradually, forms a rounded bottom, and then ascends to retest the initial resistance. It is a widely recognized bullish pattern.
Moreover, a break and retest, which is a common indication of a continuation, has also taken place. This typically happens when an asset breaks out and then resumes its upward trend. Pepe has additionally formed a bullish pennant chart pattern, consisting of a long vertical line and a symmetrical triangle, which often leads to a powerful bullish breakout. An inverse head and shoulders chart pattern has also emerged, further strengthening the bullish case.
Consequently, there is a good chance that Pepe coin will continue its upward trajectory in the coming days. A full-fledged bullish breakout would be confirmed if the coin surpasses its year-to-date high. If this occurs, it could potentially increase by around 50% as bulls target the key resistance level at $0.000030. Conversely, a drop below the support at $0.00001728 would undermine the bullish outlook.
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