Pepe (PEPE) has been making waves as it broke out past the middle of its descending trading channel on its 3-day chart, which indicates an imminent reversal of market sentiment. This also implies that market control has shifted back to the buyers, which provides the first indication for a reversal.
Source: X
If the trend is upheld, the possible targets are $0.00000630, $0.00000850, $0.00001480, and $0.00002600. Analysts are closely observing the trading volume and momentum indicators to see if this breakout is the beginning of a rally or a pullback. It appears to have made a significant move in a short period.
Also Read: PEPE Price Movement Signals Possible Rally After Support Bounce
PEPE Momentum Indicators Hint at a Slight Pause Ahead
Looking at the PEPE chart on a daily timeframe, it appears that it is dominated by a momentum phase as opposed to a basic accumulation phase. The RSI(14) is currently at 74, indicating that it is in an overbought region. This is indicative of extremely enthusiastic buying. However, at these levels, meme coins do tend to face risks of pullbacks.
Source: TradingView
The confirmation is also given by the MACD, where the MACD line is increasing, the signal line is lagging, and the green histogram is increasing. The momentum is still accumulating but not yet turning, although the RSI is already stretched. A brief pause would be a welcome relief before the next wave.
Downside Risk Persists as Price Remains Below Key EMAs
On the daily chart for PEPE, the price is still held below the major EMAs, and the prevailing sentiment remains on the sell side. The recent green candle on the chart indicates only an incidental point of oversold conditions after touching the lower Bollinger Band and not a reversal point.
Source: TradingView
In this context, this kind of bounce has a low chance of succeeding and is highly likely to fail in the region of EMA 20-50 levels. Until then, there isn’t a strong possibility of a reversal in price momentum. This is more like a corrective phase in an overriding bearish trend.
Also Read: PEPE Price Prediction 2025-2031: Can Pepe Coin Outshine Dogecoin and Shiba Inu?
