NOIDA (CoinChapter.com)—Pepe (PEPE) memecoin price rocketed 233% MTD in March before entering a consolidation phase as traders started booking profits. This led to the cryptocurrency paring some of its gains.
Moreover, wallets associated with Pepe memecoin started moving massive amounts of tokens to exchanges, sparking fears of a rug pull. However, the resulting price action has helped PEPE form a bullish technical pattern.
PEPE Memecoin Forms Bullish Pennant Pattern
PEPE price has formed a bullish technical pattern called the ‘Bull Pennant.’
The bull pennant is a continuation pattern that emerges when an investment instrument consolidates between two converging trendlines after undergoing a price rally. Ultimately, a breakout in the direction of the large initial movement follows the period of consolidation.
However, it is important to note the volume. As in, volume during consolidation should be low while it must increase during the breakout move. Otherwise, prices are more likely to pull back into the consolidation pattern.
Per the rules of technical analysis, if the PEPE price breaks out of the bull pennant, it can theoretically target a price level at least 746% higher than its current prices, meaning a price target near $0.000074.
Since whales are booking profits from memecoins, it is unlikely that even a successful breakout from the pattern would see the PEPE coin rake in the theoretical gains.
PEPE Consolidation Continues
Meanwhile, the PEPE memecoin price continued consolidating within the pennant pattern, with bulls trying to push the token above the $0.000009 price level. The bearish pressure near the supply wall forced the PEPE price to pare gains after spiking 15% to reach a daily high near $0.0000094 on March 13.
Breaking and consolidating above $0.000009 might help PEPE target the 0.618 Fibonacci resistance near $0.0000106.
Furthermore, flipping the immediate resistance could help Pepe memecoin price reach a new ATH near $0.0000132 before paring gains.
However, given the recent Pepe memecoin whale transactions, traders will likely continue booking profits once the PEPE price breaches the $0.00001 mark. The ensuing sell-off could force Pepecoin to the 0.382 Fibonacci support near $0.000000702.
If the immediate support fails, the PEPE price might drop to the support near $0.0000047.
The relative strength index – a momentum indicator measuring asset price movements to identify overbought or oversold conditions – remained overbought for PEPE, with a score of 74.69 on the daily charts.
The declining RSI could hint at cooling bullishness for the memecoin.
