- PEPE was trading within a descending triangle at press time, suggesting a potential rally toward the $0.00001000 mark.
- The growing buyer interest in PEPE was supported by multiple technical indicators.
Pepe [PEPE] failed to rally from the support level at $0.00000773 after a recent market downturn caused further declines.
However, it now appears set for a rally, trading within the same descending triangle and reacting positively from the previously failed support level.
The question is: will this be enough of a catalyst to drive PEPE’s price bullish in the short term? AMBCrypto explores whether this is possible.
Where can a descending triangle take PEPE?
A descending triangle indicated that PEPE’s price has been fluctuating between two levels: the upper and lower bounds.
This pattern suggests the market may either rally, breaking the upper bound or continue falling, breaking the lower bound.
In PEPE’s case, the trajectory favors an upward breakout. At press time, it has rebounded from the support level of $0.00000773 to $0.00000805.
If this level holds, it could propel the price to the next resistance level at $0.00000895 and potentially to the next at $0.00001000.
Source: TradingView
Should the support falter under downward pressure, PEPE might find lower support levels at $0.00000702 or $0.00000585 more tenable.
Bullish hints from technical indicators
The Bollinger Bands, which consist of a moving average contained between two standard deviation lines, suggested that PEPE has been oversold.
This set the stage for a potential rally toward the middle band at $0.00000949 or even higher to $0.00001000.
Source: TradingView
The Relative Strength Index (RSI), which measures the velocity and magnitude of directional price movements, supported this view.
With a press time reading of 40.28, it indicated that momentum may be building for an upward move.
Source: TradingView
Bullish sentiment rises
According to Coinglass, Open Interest in PEPE derivatives has reached a peak of $83.46 million, the highest since the 6th of August.
Source: Coinglass
Read PEPE’s Price Prediction 2024 – 2025
High Open Interest indicates strong market participation, which could significantly boost PEPE’s price due to increased liquidity.
In summary, both the market structure and technical indicators hint at a bullish future for PEPE, potentially driving its price to new highs in the near term.
