PEPE Coin is looking to make some major gains as the cryptocurrency market sees renewed interest. A bullish descending wedge is forming with a 40% increase on the open. Once Ethereum breaks above $2,900, PEPE is likely to break out to new highs with a target of $0.000020.
How does ETH price affect PEPE price?
PEPE has been outperforming Ethereum in 2024. PEPE is a high beta asset to ETH, which means that PEPE's price action is generally more volatile and amplified than ETH, with a greater chance of providing higher returns during bull markets.
Additionally, if ETH manages to break out of the $2,800-2,900 price range, it could trigger a rapid rise in PEPE to all-time highs (new highs).
Falling wedge pattern indicates bullish momentum
The PEPE/USD chart shows a bullish falling wedge pattern, suggesting a possible reversal if the price breaks above the critical resistance level of $0.000013. This setup suggests that selling pressure is waning and a breakout could trigger a sharp rise.
The next resistance after this breakout is $0.000020, which indicates a rebound of 110%. The price is currently above the 50-day and 100-day EMAs, indicating a bullish trend for the coin. As long as PEPE remains above these EMAs, it will support the bullish outlook.
On the downside, $0.0000086 is a critical support. Failure to defend this level could invalidate the bullish pattern and result in further declines.
The RSI is at 53, showing neutral momentum, consistent with the possibility of an upside breakout. The bullish momentum will be confirmed when the volume turns higher and confirms a breakout of the wedge pattern.
The coin must break above the critical resistance level of $0.0000013 for the expected rally to take place. If PEPE is able to break out of the current trend, the price could surge to $0.000020. Unfortunately, if any of the critical support levels fail to hold, the trend could reverse.
PEPE market sentiment and open interest rise
How good this potential rally is will depend largely on broader market sentiment and the upcoming election, which could create some market volatility that could affect investor behavior, especially in riskier assets like memecoins.
Additionally, open interest (OI) has risen sharply since the beginning of August, indicating increased market participation. In the most recent week, PEPE OI has seen a recovery, increasing by as much as 40%.
A higher OI typically indicates an influx of capital and traders into or taking futures positions, which can drive future price action depending on the direction of the market.
The increase in open interest indicates growing trader activity and interest in PEPE futures contracts. This could reflect bullish sentiment around the token’s potential breakout from a falling wedge pattern.
