As memecoins look to extend their 2024 gains, one candidate stands out. Pepe price has resumed its rally and looks to extend its gains further. The formation of a bullish pennant pattern in the 4-H charts of Pepe might help it enter a 30% rally.
Pepe traded at $0.00001271 at press time with 5.39% gains in the last 24 hours and a corresponding trading volume of $1.2 billion.
Pepe has been one of the best-performing cryptocurrencies this bull season. In the last year, the crypto gained more than 864%. The strong rise has attracted several investors, both retail and whales.
Bullish Pennant Pattern on Pepe Price Chart
On Pepe’s 4-hour chart, the price has broken out of the bullish pennant chart pattern.
A similar bullish pattern, the Descending Triangle, formed between July 8 and 15 and helped Pepe gain 36%.
The bullish pennant chart pattern is a super bullish pattern with high returns potential. In the above pattern, the bull pennant can be identified as two oblique lines (in blue) that appear to converge.
What Do Indicators Say
The relative strength index (RSI), which measures the strength of the price momentum, shows a score of 59, which can be considered bullish on Pepe charts.
The RSI shows how strong a cryptocurrency can grow at any given point in time. Higher RSI scores indicate strong momentum, whereas lower RSI scores show weaker momentum.
The bullishness is also confirmed by another indicator, Moving Average Convergence and Divergence (MACD). The MACD has shown a positive crossover on Pepe’s 4-Hour charts.
A positive crossover happens when the short-term moving average goes above the long-term moving average. This happens because when the price gathers momentum and moves higher, the short-term moving average rises quicker than the long-term. After all, it is the average of fewer closing prices.
PEPE Price Supports and Resistances
At press time, Pepe’s price was $0.00001271, up 7.08% in the last 24 hours. The corresponding trading volume was $1.2 billion.
Pepe has strong support at $0.00001131, followed by the price level of $0.000008. On the upside, the chart shows that resistances are at $0.00001379, followed by $0.00001546, and the final one at $0.00001712.
If the price of Pepe surges above $0.00001712, it could make a new all-time high after the last one($0.00001718) on 27 May 2024.
CryptoMutant, a popular crypto analyst on X, also agrees this is a bullish move.
A Small Challenge Ahead
However, Pepe’s rise above the last all-time high does not seem easy. The crypto has witnessed sluggish growth in its on-chain metrics. According to data from Santiment, there has been a slight decline in the new addresses in the last three days.
Yet, once the crypto makes a new ATH, data changes soon, and we see new users join as the rally proceeds.
