PEPE Coin (PEPE) Price Squeezed Within a Bullish Pennant Pattern as Buyers Defend Higher Support Levels

As overhead resistance thins and volume increases, signs in the market point to a continued increase in price.

PEPE coin price has been contained within a pennant pattern as buyers defend higher support levels. As overhead resistance thins and volume increases, signs in the market point to a further increase in price.

PEPE Coin Price Is Being Squeezed Within A Pennant Pattern

Analyst Clifton FX identified a bullish pennant formation on the 4-hour PEPE/USDT chart. Usually, this occurs during a continuation after a strong upward move. A pattern appeared in the chart where highs were lower and lows were getting higher, both converging at a point near the top.

Now, the accumulation started as PEPE coin price surged strongly upward. Structurally, the pennant seemed clear, highlighting that bulls were in control while small losses and pauses made for small pulls.

Thus, if PEPE moves above the upper trendline in high volume, it may increase by 50% to 100%. According to the measured move, the target is between $0.000016 and $0.000019.

Moreover, the momentum leading to this point and the tight pennant suggest a high chance for upside. But, a failed breakout may push PEPE below the key level of $0.0000086, rendering the earlier rally invalid.

Sell Wall At $0.0000137 Remains Key Level To Watch

According to Analyst CW, PEPE coin price crossed a crucial resistance zone at $0.0000137, acting as the main sell wall. This area had consistently prevented the price from making a decisive breakout.

Also, the chart indicated that below this level, volume was increasing. This showed that buyers were struggling to prevent dips and preparing for another rally. Volume seemed to be gradually building, signaling a shift in momentum towards bulls if resistance is broken cleanly.

CW explained that after PEPE coin price crosses the resistance, the next big sell point is around $0.000025. With little resistance to a price increase, it could rise rapidly.

Technically, breaking this range from above could lead to a rally of up to 80%, as the earlier bullish pennant projections indicated. However, failure to overcome the red zone may result in a retest of the support levels, keeping PEPE in consolidation.

Moving Averages Support Uptrend Momentum

Analyst Willjayducks pointed out a positive technical pattern in PEPE coin price as it crossed the main resistance points and formed a bullish pennant. The top meme coin moved above both the 100 and 200-day EMAs on the chart, showing an uptick after a period of consolidation.

The token has been tightening near $0.000015, forming a pennant shape, which is usually seen before a continuation breakout. The bullish sentiment is also confirmed by the increase in the volume profile during the current rally.

On the chart, resistance at $0.0000102–$0.0000106 that turned into support, highlighted by the green zone, was successfully reclaimed. If PEPE coin price breaks above the current pennant, it could move towards the red band in the $0.000020-$0.0000225 range.

The confluence of price structure, moving average crossovers, and less overhead resistance adds strength to the bullish bias. But, rejection here may lead to a retest of the reclaimed support zone.

Further supporting a bullish outlook, a recent analysis showed PEPE coin price broke above a key downward trendline, signaling a possible trend reversal. A rounded bottom pattern on the weekly chart and increasing trading volume reinforce this view.

Additionally, the 0.618 Fibonacci level at $0.00000941 offered strong support. On-chain data revealed a surge in derivatives volume to $2.48 billion, while the frog-themed meme coin price rallied over 4% to $0.00001368 in the last 24 hours.