PEPE coin price could be on the cusp of a strong bullish breakout as it slowly forms a rare chart pattern on the daily chart. One top crypto analyst has predicted that his base case is that it could double in the next few weeks.
Top Expert Expects PEPE Coin Price to Double
A top crypto analyst believes that Pepe, the third-biggest meme coin in crypto, may be on the verge of a strong bullish breakout in the coming days or weeks.
The analyst noted that the coin was forming a double bottom pattern on the daily chart. This pattern is comprised of two lows, where buyers step in to prevent further declines, and a neckline.
In this case, the two lows are at $0.000005265, while its neckline is at $0.000092, which is about 75% above the double-bottom point.
Solberg Invest believes that the token will ultimately breakout to $0.000016, more than 100% above the current level. Such a move would push its market cap from the current $3 billion to over $6 billion.
PEPE Price Has Other Bullish Catalysts
Technicals suggest that the PEPE price has other technical catalysts that may push it much higher in the near term. The first crucial catalyst is that the coin has formed a triple-bottom pattern at $0.00005858. This pattern is also made up of three bottoms and a neckline, which is at its all-time high of $0.00002835, up by 290% from the current level.
Further, there are signs that the Pepe coin is slowly forming a bullish divergence pattern on the daily chart. The Percentage Price Oscillator (PPO) has continued to move upwards and is about to move above the zero line. This indicator is a unique form of a MACD and is used to identify divergencies.
The Relative Strength Index (RSI) has also drifted upwards and is about to move to the neutral point of 50. That is a sign that it may soon make a bullish breakout once this consolidation phase ends.
Further, the coin has also formed a falling wedge pattern, one of the top reversal patterns. The coin has already moved above the upper side of the wedge, signaling a bullish breakout is coming.
However, the bullish PEPE price forecast will become invalid if it crashes below the triple-bottom point at $0.000005860.
On top of this, the closely watched MVRV-Z score indicator signals that Pepe is a cheap coin. The figure remains at minus 0.717, much lower than the December high of 2.67. That is a sign that the coin has become cheap, which could attract buyers.
Therefore, the PEPE coin price has formed numerous bullish chart patterns, meaning that it may soon have a bullish breakout.
Frequently Asked Questions (FAQs)
Chart patterns point to more upside in the coming months. It has formed a double and triple bottom pattern and a falling wedge. Therefore, the token will likely rebound and double in the near term.
Pepe has also formed a bullish divergence pattern as the percentage price oscillator and the Relative Strength Index have pointed upwards.
The bullish Pepe outlook will be invalidated if it drops below the double and triple-bottom pattern.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/top-expert-predicts-pepe-coin-price-could-double-as-rare-pattern-forms/
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