Pepe (PEPE), currently positioned as the third-largest memecoin in the market, appears to be on the verge of experiencing significant positive momentum following the formation of a bullish price action pattern on its daily chart.
Causes behind PEPE’s recent surge in value
The overall sentiment surrounding this memecoin shifted notably when news surfaced about the U.S. Securities and Exchange Commission (SEC) planning to review pending cases and freeze those not involving fraud.
This update, related to the restructured SEC administration under Donald Trump, has had a favorable impact not only on PEPE but also on the broader cryptocurrency market. Following this announcement, cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) all experienced significant price increases.
Recommendation from an Expert to Buy PEPE
Building on the recent uptrend of the memecoin, renowned crypto analyst Ali shared a post on X (previously known as Twitter), indicating that a technical indicator called TD Sequential gave a buy signal for PEPE on its daily chart.
Ali highlighted that this buy signal emerged after PEPE broke out of a lengthy consolidation phase near a crucial support level following a surge in value the previous day.
PEPE’s Price Movement and Significant Levels
In addition, analysis of PEPE’s daily chart suggested the formation of a bullish double-bottom price action pattern, further underscoring the potential for a substantial upward rally in the future if the sentiment remains positive.
Even though the memecoin experienced an impressive gain of 14%, it appeared to be undergoing a correction at the time of writing.
Furthermore, CryptoCrypto’s technical assessment indicated a bullish outlook for PEPE, particularly as it was trading above the 200-day Exponential Moving Average (EMA) on the daily chart – indicating an uptrend.
Simultaneously, the Relative Strength Index (RSI) for the memecoin was below the overbought threshold post a notable price surge, suggesting that there is ample room for PEPE to progress significantly.
Forecast for PEPE’s Price Trajectory
Based on recent price movements and historical momentum, if the current market sentiment persists, there is a strong likelihood that PEPE could initially surge by 22% to reach the $0.000022 mark. Subsequently, if this level is surpassed, there is potential for a further climb to the $0.0000269 level in the coming days.
PEPE’s daily chart also indicated that the $0.000022 threshold represents a possible neckline for its double-bottom price action pattern, a level that the memecoin could breach if the sentiment remains favorable.