Key Takeaways:
- Meme token Pepecoin has formed bullish technicals on lower timeframe charts.
- However, the PEPE price continues crabbing.
- Traders have become bullish about the token’s prospects.
NEW DELHI (CoinChapter.com) — Meme token Pepecoin prices have formed bullish technical patterns on the lower timeframe charts, making trader sentiments positive about the token’s price prospects.
Crypto Trader Kaleo noted that PEPE price had formed a bullish pattern called the ‘double top,’ visible on the 5-minute timeframe charts.
The double bottom pattern forms when an asset’s price drops to a low and recovers slightly before dropping to the previous low. The twice-touched low acts as a support level for the pattern, while the length of the initial drop gives the profit target for the pattern.
Therefore, should the PEPE price conform to the rules of technical analysis, the token could rally higher after confirming the pattern.
Zooming out on the chart shows that the meme token has formed another bullish pattern, visible in the 4-hour timeframe, called the ‘Ascending Triangle.’
The technical pattern forms due to price moves that allow a horizontal trendline to connect the swing highs and a rising trendline to connect the swing lows. The price target for the pattern is equal to the triangle’s height at its widest part.
Thus, if the triangle pattern pans out, the PEPE price could rally over 13% to reach a theoretical price target near $0.0000008.
Traders Bullish On PEPE
Meanwhile, traders have started bullish on the meme token, recently facing allegations of rug-pulling investors. Crypto trader Kaleo commented that the PEPE price looked “ready to run it back to the highs.”
Crypto influencer BitcoinLebron claimed “BULLS are back in control of PEPE” price action.
Moreover, another X-based crypto analyst, Muhammad Uzair, shared Kaleo and BitcoinLebron’s sentiments on Pepecoin, advising his roughly 3,700 followers that it was the “right time to [go] bullish on” Pepecoin.
The open-interest weighted funding rate remained positive for Pepecoin perpetual contracts, suggesting that traders remained bullish on Pepecoin’s long-term prospects.
Funding rates refer to the periodic payments that futures contract holders receive, and it is equal to the difference between perpetual contracts and spot prices.
However, recent long positions led to recent PEPE contract liquidations, which might force traders to adjust their price target for the amphibian-themed token.
PEPE Price Crabbing Below EMA Resistance
Pepecoin price has been crabbing after rallying over 17% on Sept. 22 as bulls failed to flip the 20-day EMA (red wave) dynamic resistance into support. PEPE price rose 2.6% on Sept. 27 to register a daily high near $0.000000715.
Flipping the immediate resistance could help the PEPE price rally to the resistance near $0.0000008. Moreover, breaking and consolidating above the immediate resistance might help Pepecoin price target the 100-day EMA (blue wave) resistance near $0.000001.
Conversely, failing to start a rally could push the PEPE price to the support near $0.00000061. Furthermore, breaching the immediate support might result in Pepecoin price testing the support near $0.000000502 before recovering.
The RSI for PEPE remained neutral, clocking a score of 44.98 on the daily charts.
