Pepe Coin price suffered a big reversal today, May 19, as the mood in the crypto and stock market worsened following the recent Moody’s credit rating downgrade of US debt. The meme coin was down by almost 10% in the last 24 hours. Nonetheless, its technicals and popularity among traders points to a rebound, potentially to its all-time high of 0.000028381.
Pepe Coin Price Technical Analysis Points to an Eventual Rebound
While the Pepe Coin price has pulled back, technicals point to a contrarian rebound to its all-time high. The first thing to watch is that the coin has formed a bullish flag chart pattern on the daily chart.
This pattern happens when an asset goes parabolic and then starts to consolidate as some investors take a breather. In most periods, this consolidation is usually followed by another parabolic move.
In the Pepe price case, the first part of the bullish flag pattern happened earlier this week as it rallied from a low of $0.000007534 to a high of $0.00001534 within days. After that, the coin continued to consolidate in a pattern that resembled a hoisted flag.
The other highly bullish pattern that formed was a giant double-bottom at $0.00000577. This pattern happens when an asset forms two lows and a neckline. In this case, the neckline was at $0.00002838, its all-time high. In most cases, an asset usually bounces above the double-bottom, surges to the neckline, and then continues soaring.
Further, the value of Pepe is about to form a golden cross pattern as the spread between the 200-day and 50-day Weighted Moving Averages (WMA) narrows by the day. Therefore, the most likely Pepe price forecast is bullish, with the key target being the all-time high. The disclaimer for this target is that it will take time, and the coin will have some pullbacks as this happens.
The bullish outlook will become invalid if the coin drops below the psychological point at $0.000010. A move below that level will point to more downside, potentially to the double-bottom level at $0.00000577.
Pepe Coin Price Chart
Bullish Catalysts for Pepe Price
Pepe Coin price has numerous bullish catalysts that may push it higher in the coming months. First, as this CoinGape article wrote, there is a likelihood that Ethereum price will eventually surge to a record high this year. Such a move would benefit the top Ethereum meme coins like Pepe and Shiba Inu.
Further, the coin maintains a positive funding rate, a sign that investors believe that the future price is higher than the current level.
Pepe Funding Rate
Third, Pepe has become one of the most popular meme coins in the market. Etherscan data shows that the number of holders has jumped to over 435,000. Its daily volume of $2.4 billion exceeds that of other coins like Shiba Inu and Official Trump.
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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.
