Key Takeaways
- PEPE has dropped 12%, but a bull flag pattern on the chart suggests the decline could be temporary.
- Despite the pattern, bearish pressure remains, with the CMF below zero and a death cross forming.
- PEPE’s price is consolidating, and a failure to hold the $0.000010 support could lead to further losses.
The price of the frog-themed meme coin Pepe (PEPE) has fallen 12% in the past 24 hours. However, this dip may not last long.
Analysis of the memecoin reveals a bullish pattern forming, suggesting the current pullback could be part of a healthy consolidation phase. If the setup holds, this correction may simply be laying the groundwork for a fresh move higher.
Here’s what could be next for PEPE’s price.
Flag Formation Keeps PEPE Alive
On the daily chart, PEPE’s price has been trading in a descending channel since May 10. However, this pattern eventually led to the formation of a bull flag.
As seen below, the pattern began with a sharp upswing, with PEPE’s price jumping from $0.0000079 to $0.000015.
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The flag later showed a recent consolidation between $0.000010 and $0.000014. However, mentioning that the breakout from the flag’s upper trendline might not happen quickly is essential.
One reason for this is the Chaikin Money Flow (CMF) position. The CMF reading is below the zero signal line from the image below.
This position indicates rising selling pressure. Should this trend continue, bulls must exercise patience before PEPE’s price exits the current corrective phase.
For that to happen, bulls must defend the support at $0.000010. If successful, the memecoin might be able to breach the overhead resistance around $0.000016.
Death Cross Appears
Zooming into the 4-hour chart, PEPE has flashed a death cross — a bearish signal that forms when the longer-term EMA overtakes the shorter one.
Here, the 50 EMA (yellow) has crossed below the 20 EMA (blue), signaling weak short-term support for a rebound.
With momentum fading, PEPE’s price may continue consolidating until a decisive breakout changes the trend.
PEPE Price Prediction: Sideways Movement Next
Regarding the short-term outlook, the meme coin might fail to break out immediately despite the bull flag formation. On the daily chart, the Money Flow Index (MFI) is hovering near the neutral line.
This indicates a balance between buyers and sellers. As such, it might become difficult for PEPE’s price to surge.
Instead, the cryptocurrency might keep swinging sideways. However, traders might need to watch out for the support at $0.000010.
Should bears tug the token below this level, the expected breakout might not happen. In that case, PEPE might see an extended correction.
On the contrary, if buying pressure increases, the memecoin might break above the resistance at $0.000014.
If that were to happen, PEPE’s price might rally to $0.000018. In a highly bullish market condition, the token’s price could hit $0.000020.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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