The cryptocurrency market has started the second quarter on a positive note after a record-breaking bearish first quarter. Ethereum (ETH) and memecoin PEPE have begun to show gains.
Falling Wedge Breakout
On the daily chart, PEPE saw an impressive 265% rally in November 2024. However, following that uptrend, the price entered a correction phase, forming a falling wedge pattern, which led to an 80% drop to a low of $0.0000052. This level acted as a strong support zone where buyers stepped in to push the price higher. Recently, PEPE made a significant breakout, surpassing the descending trendline of the falling wedge and reached a short-term high before pulling back to the breakout trendline, where it successfully held support and is now gaining momentum.
Is a Recovery Rally Ahead?
The MACD indicator is showing signs of a bullish crossover, suggesting that selling pressure might be easing. If the momentum strengthens, it could confirm a shift towards a recovery phase. The next few days will be critical for PEPE. If bulls can maintain momentum and push past key resistance levels, a significant recovery rally could be on the horizon.
Conclusion: What to Expect from PEPE?
If PEPE can break the current resistance, it could open doors for a rally towards the $0.00001475 price zone, representing a potential 91% increase from current levels. However, failure to break through these barriers may lead to further consolidation or a potential retest of lower support levels.
PEPE shows signs of recovery after prolonged losses. Will the memecoin maintain its momentum? Time will tell.
