Pepe (PEPE) Price Action Forms Inverse Head and Shoulders (H&S) Pattern

Pepe (PEPE) price action has formed an inverse head and shoulders (H&S) pattern on the four-hour chart.

Pepe price is showing signs of a potential breakout as key technical indicators align and on-chain data highlights the meme coin’s recovery.

The meme coin has formed an inverse head and shoulders (H&S) pattern on the four-hour chart. This structure, if it plays out, could propel Pepe coin towards the next resistance level.

The head of the H&S pattern sits at this month’s low of $0.000005245, while the neckline is placed at $0.000007415. A breakout above this level could push Pepe coin towards the next resistance at $0.000008915.

World Of Charts, a trader who has been tracking PEPE price, highlighted this setup, adding that “we can expect 50-60% bullish rally after successful breakout.”

If confirmed, the breakout could extend higher as momentum builds.

Another analyst, Dylan, highlighted the role of big investors, also known as whales, in potentially fueling the next move for Pepe coin.

“Big whales are accumulating while price is slowly moving up. We might also see some action if ETH starts performing well (which it usually does during bull market season). But for now, it’s best to wait for some good setups and good entries.”

On-chain data supported the growing bullish narrative. According to crypto analytics firm Nansen, investors are moving Pepe coin out of exchanges into self-custody, which might reduce the potential selling pressure.

The tokens on exchanges have dropped to 240.15 trillion, down 1.21% from last week. This signaled that investors are becoming more confident in holding onto their Pepe coins rather than selling them.

“Pepe Bottom Confirmed!” added CryptoElites, who also noted that the meme coin has already recovered 15% from its recent lows.

The post added that a 40X target is in sight for pepe coin but such long-term projections should be taken with a grain of salt as they tend to be quite bold.

Meanwhile, Max, a trader who has been analyzing the positioning of Pepe coin, pointed out that the token remains undervalued relative to historical patterns.

“When PEPE/DOGE has broken out, PEPE/USD puts in a big move. The same goes for PEPE/ETH. There has been consistent buying pressure for a week now.”