PEPE Coin is looking to make some serious gains as the crypto market is experiencing some renewed interest. A bullish falling wedge pattern is developing and open increased by 40%. According to analyst MaxBecauseBTC, once Ethereum breaks above $2,900, PEPE could break out to new highs to target $0.000020.
How ETH Price Can Impact PEPE Price Highs: Analyst
Throughout 2024, PEPE has been outperforming Ethereum according to analysts. Max points out that PEPE is a high beta asset to ETH meaning that PEPE’s price behavior, in general, tends to be more volatile and amplified versus ETH, offering a higher possibility of higher returns during a bullish market.
Source: X
The claim that PEPE has been “leading ETH for the entire year” implies that PEPE has experienced higher percentage increases in value than ETH.
Additionally, if ETH manages to break above the price range of $2800-$2900, it could trigger a rapid movement in PEPE towards its all-time highs (ATH).
Falling Wedge Pattern Suggests Bullish Momentum
The PEPE/USD chart shows a bullish falling wedge pattern, signaling a potential reversal if the price breaks above the key $0.000013 resistance level. This setup suggests the weakening of selling pressure, and a breakout could trigger a substantial upward movement.
The next resistance level after this breakout is $0.000020, indicating a 110% rally. The price is currently above the 50 and 100 day EMAs, indicating the coin is bullish. As long as PEPE stays over these EMA’s, it will support the bullish outlook.
Source: Tradingview
On the downside, $0.0000086 serves as critical support. A failure to hold this level could invalidate the bullish pattern and lead to further declines.
Neutral momentum is shown with the RSI at 53, matching up to the possibility of an upward breakout. Bullish momentum will be confirmed when volume becomes high and a breakout above the wedge pattern is confirmed.
The coin must break above key resistance levels of $0.0000 013 to enable the predicted rally to happen. If PEPE can break out of its current trend, the price could fly up to its $0.000020. Unfortunately, should any key support levels fail to hold the trend could be reversed.
PEPE Market Sentiment and Open Interest Rise
How good the prospects for this potential rally will be depends greatly on the broader market sentiment and upcoming U.S. presidential elections. The elections could create some market turbulence that could impact behavior on the part of investors, particularly in the riskier assets like meme coins.
Additionally, a significant rise in open interest (OI) occurred from early August signaling increased market participation. In the recent week, PEPE OI has shown a resurgence, with a notable 40% increase.
Source Coinglass
Higher OI typically signals an influx of capital and traders entering or holding futures positions, which could drive future price movements depending on market direction.
This rise in open interest suggests growing trader activity and interest in PEPE futures contracts. This likely reflects the bullish sentiment surrounding the token’s potential breakout from the falling wedge pattern.
