Date: Fri, Oct 25, 2024, 02:26 PM GMT
In the cryptocurrency market, memecoins have picked up the pace as BTC hovers near $69K. Following this trend, the third-largest memecoin, Pepe (PEPE), has shown positive signs and is currently trading at $0.000009792. Amid this bullish sentiment, crypto analyst Jonathan Carter has highlighted a potential breakout for PEPE, with the token bouncing back from a key support zone. Let’s dive into the detailed technical analysis to understand if PEPE is primed for a significant price move.
Symmetrical Triangle Formation
The chart reveals that $PEPE is currently trading within a symmetrical triangle pattern, a common technical formation that often leads to a breakout in either direction. This triangle pattern is characterized by a series of lower highs and higher lows, creating a narrowing price range.
The descending resistance line has capped PEPE's upside movement for some time, but now that the price has found strong support at the ascending support line, there’s a growing potential for an upward breakout.
Source: JonathanCarter/X
Key Levels to Watch
Support Zone: PEPE is currently bouncing off the support zone around $0.00000950, reinforced by the ascending trendline. This area has acted as a strong defense against further downside, making it a crucial level for bulls to maintain.
50-Moving Average (MA 50):The price has been hovering around the 50-period moving average, which is currently acting as dynamic resistance. A break above this could be an early signal of bullish momentum returning to the market.
Resistance Levels:The immediate target for PEPE is to break through the descending resistance of the triangle, which sits around $0.00001040. If this level is surpassed, Carter's analysis points towards a larger breakout, with a key target of $0.00001190.
Volume Profile:The volume profile shows heavy trading activity around the support zone, suggesting that buyers are stepping in at these lower levels. This increase in demand may help push the price higher towards resistance.
RSI Indicator
The Relative Strength Index (RSI) shows that PEPE has been trading in a neutral zone, with an RSI of around 40. While it is not yet in oversold territory, this neutral position gives PEPE enough room to gather bullish momentum. If the RSI starts climbing towards the 50-60 range, it could indicate that the upward breakout is gaining strength.
Potential Scenarios
Bullish Breakout:If PEPE can successfully break above the $0.00001040 resistance level, traders should look for a continuation towards the $0.00001190 target. This breakout could spark renewed interest in PEPE, attracting more buyers and potentially leading to further price gains.
Bearish Breakdown:On the flip side, if PEPE fails to hold the $0.00000950 support, the price may slip towards lower support levels around $0.00000910. A breakdown below this level could signal a shift in market sentiment, with potential for further downside.
Conclusion: Time to Dive In?
Jonathan Carter’s analysis suggests that PEPE is in a pivotal position. With the price bouncing off a key support zone and approaching the resistance of a symmetrical triangle, the next few days could see significant movement. Traders should keep a close eye on the $0.00001040 resistance level for a potential breakout. If bullish momentum continues, PEPE could reach new highs in the short term.
However, caution is advised, as a failure to break above the resistance could lead to another test of the support zone. As always, risk management is essential, and traders should be prepared for either scenario.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.
