Could PEPE Be Set for an Imminent Breakout? Analyst Weighs In

Published 11/02/2024, 09:54
Updated 11/02/2024, 10:15
Could PEPE Be Set for an Imminent Breakout? Analyst Weighs In

Coin Edition -

  • PEPE formed an H&S pattern and the TD Sequential suggested a buy signal.
  • A retest of $0.000001199 could be possible if PEPE flips $0.000001055.
  • Higher highs on the MACD could trigger a rally to $0.00000280.

Technical analyst Ali Martinez posted on February 10 that Pepe (PEPE) has issued a buy signal on the 3-day timeframe. To make this conclusion, Martinez had formed a Head-and-Shoulder (H&S) pattern on the said chart.

For context, an H&S pattern appears when a set of three peaks and troughs is formed. Here, the peak at the center represents that head while the other two indicate the shoulder. From the chart Martinez shared, the pattern has signaled a bearish-to-bullish reversal for PEPE.

Indicators Hint at a Solid Rally

Another indicator that reinforced the prediction was the Tom DeMark (TD) Sequential. According to the analyst, the TD Sequential showed that the bearish trend had been exhausted and the time for a bullish reversal was here already.

If Martinez’s prediction comes to pass, then PEPE’s price might increase by 64.35%. Should this be the case, the token price could hit $0.00000280 in the short to mid-term.

In addition, this was not the first time the analyst predicted a jump in PEPE’s value. On January 11, Martinez opined that the meme coin might advance toward $0.0000016.

Coin Edition also discussed how PEPE’s recovery was near since bears were showing signs of exhaustion. Therefore, the buy signal predicted by the analyst aligned with what the outcome of our analysis suggested.

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PEPE Aims for $$0.000001199 First

At press time PEPE’s price was $0.00000102, indicating a 13.69% increase in the last seven days. The PEPE/USD 4-hour chart confirmed that bulls have taken advantage of sellers’ exhaustion.

As bullish sentiment seems to be on the rise, traders might need to watch out for the resistance at $0.000001055.If buying pressure helps flip the hurdle, then PEPE’s next target might be a rally to $0.000001199. Should PEPE retest this level, a jump to $0.0000028 might then be possible.

However, market participants might need to be wary of sellers. If some traders decide to book profits at any of the highs, PEPE could pull back. Meanwhile, the Relative Strength Index (RSI) was 65.92 as of this writing.

As it stands, the reading appears ready to move higher. Should the RSI break above 70 points, the token might become overbought and the uptick might cool off.

PEPE/USD 4-Hour (Source: TradingView)

Furthermore, indications from the Moving Average Convergence Divergence (MACD) remained bullish. From Coin Edition’s assessment of the MACD, buyers had outpaced sellers. However, if PEPE wants to push another rally, the histogram bars need to exit the lower highs and flip to the higher highs.

The post Could PEPE Be Set for an Imminent Breakout? Analyst Weighs In appeared first on Coin Edition.

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