- On the 4-hour PEPE chart, it seems to be consolidating in a bullish pennant, so a breakout could be ahead.
- In light of RSI and MACD, it looks like the trend is becoming more positive and likely to move prices higher.
- If resistance is overcome, a large rally could happen; if not, the market could revisit the previous support area.
A recent technical setup on the PEPE/USDT pair suggests the possibility of a significant upward movement. Based on analysts’ reports, the token is valued at $0.00001427 as of now and has gained 9.7% over the last day. On the 4-hour chart, PEPE is seen forming what resembles a bullish pennant which is famous for indicating that a symbol may return to its uptrend once it consolidates.
Bullish Pennant Structure Indicates Potential Upside
The 4-hour timeframe displays converging trend lines forming a classic pennant formation. This pattern emerged after a sharp price surge in early May and has since been followed by lower highs and higher lows, indicating market indecision. The horizontal support level is situated near $0.00001275, while a descending resistance trendline is currently capping upward price action.
If the price closes above the upper boundary of the pennant with sustained volume, technical analysts suggest this may confirm a breakout. In this scenario, the token could see a strong rally of 50% to 100%, potentially reaching the $0.00002000 level, based on past price moves.
Technical Indicators Show Bullish Momentum
On the 1-hour timeframe, the Relative Strength Index (RSI) stands at 64.67 slightly below overbought levels. This suggests buyers still have room to push prices higher before the asset becomes technically overextended.
Source: TradingView
Meanwhile, the MACD is showing a bullish signal, with the MACD line crossing above the signal line and all histogram bars turning positive. This crossover is generally interpreted as a potential early signal of positive price movement.
Caution Remains Amid Volatility
Despite the technical signals, market participants remain cautious. The current resistance zone near $0.000014 poses a short-term barrier. Without a decisive breakout and strong volume confirmation, the risk of a failed move remains.
PEPE’s current chart structure points to a potentially bullish scenario, but traders appear to be waiting for further confirmation. A break above the pennant could trigger accelerated momentum, while failure to do so may result in extended sideways movement or even a pullback toward the $0.00001275 support level.
