Pepe Drops 4.68% Amid Bullish Patterns, 290% Gain Potential

Pepe's latest price was $0.05, down 4.679% in the last 24 hours. Despite the recent decline, Pepe, the third-biggest meme coin in the crypto market, has been the subject of significant attention from analysts and traders alike. A top crypto analyst has noted that Pepe is forming a double bottom pattern on the daily chart, which is characterized by two lows where buyers step in to prevent further declines and a neckline. This pattern suggests a potential bullish breakout in the coming days or weeks. The analyst also highlighted that Pepe has formed a triple-bottom pattern at a specific level, with a neckline at its all-time high, indicating a potential 290% increase from the current level. Additionally, the coin is forming a bullish divergence pattern on the daily chart, with the Percentage Price Oscillator (PPO) moving upwards and the Relative Strength Index (RSI) drifting upwards, both of which are signs of a potential bullish breakout. The coin has also formed a falling wedge pattern, one of the top reversal patterns, which further supports the bullish outlook. However, the bullish outlook will be invalidated if Pepe crashes below the triple-bottom point. The MVRV-Z score indicator also signals that Pepe is a cheap coin, which could attract buyers and support a further upside rally.

Despite uncertain market sentiment, Pepe appears bullish and primed for an upward move. This optimism stems from its strong price action and consistent support from on-chain metrics. Both factors reinforce its positive outlook. According to AMBCrypto’s technical analysis, Pepe appeared to be forming a bullish double-bottom price action pattern on the daily time frame. Additionally, it recently broke out of a descending trendline that had been acting as resistance since late March 2025. Following the breakout, the memecoin rose over 10% despite ongoing hurdles and market uncertainty. Moreover, PEPE’s price is still poised for a 20% upside move in the coming days. Additionally, if this upside momentum continues and PEPE closes its daily candle above a certain level, the rally could extend further, potentially reaching the next resistance level. This indicates that the memecoin still has room for an 85% upside rally. At the time of writing, PEPE was trading below the 200-day Exponential Moving Average (EMA) on the daily time frame. This technical indicator suggests that the memecoin is in a downtrend and currently holds weak momentum. Alongside its bullish price action, a crypto expert recently highlighted PEPE’s historical performance on X (formerly Twitter). The expert noted that in October 2024, PEPE surged over 100% after breaking out of a symmetrical triangle pattern. This time, the memecoin has successfully exited a descending channel pattern. Based on this breakout, the expert anticipates a similar upward move.

This bullish outlook appears to be further supported by trader and investor activity. Data from Spot Inflow/Outflows revealed that exchanges have witnessed an outflow of $5.17 million worth of the PEPE memecoin, indicating potential accumulation. Such outflows from exchanges can create buying pressure and support a further upside rally. Notably, 63.02% of top traders on Binance, the world’s largest cryptocurrency exchange, were going long on PEPE, while the remaining were holding short positions. Data further reveals that memecoin’s Long/Short Ratio stood at 1.70, indicating strong bullish sentiment among traders. When combining these on-chain metrics with technical analysis, it appears that the bulls are back and currently dominating the memecoin, while short sellers seem to be exhausted.

In a recent market commentary, analysts hinted at the possibility of a 100% upside in Pepe, drawing parallels with its October breakout pattern. Notably, 2024 marked a breakout year for the memecoin, after it posted remarkable 1,435% year-over-year gains – Surging from its New Year opening price. By doing so, it closed the year with exponential returns. At press time, however, PEPE was trading 61% below its Q1 2025 opening, reflecting broader market corrections. Still, its current 1-day chart structure closely mirrors the late October consolidation range, characterized by compressed price action. Historically, this pattern has preceded a sharp breakout, with the same seeing PEPE skyrocket by 227%, peaking at a certain level on 14 November. As a result, speculations are swirling around whether the memecoin could be ready for a similar breakout in the near term. A repeat rally, perhaps? Interestingly, active addresses on the PEPE network averaged 2,500 prior to a significant surge to 20,500 in mid-November, aligning with the token’s parabolic price movement. Historically, such an uptick in on-chain activity has been a leading indicator of bullish momentum. However, current network metrics remain relatively flat, with active addresses at 2,587 – Mirroring previous consolidation phases before breakout events. In other words, this could mean a similar accumulation pattern that preceded a significant price shift previously. Despite the lack of concrete confirmation, PEPE’s speculative rally potential might be a double-edged sword. Particularly when considering derivative market data. For instance – Coinglass data indicated that despite muted on-chain activity and a lack of clear accumulation signals in spot market volume, Open Interest (OI) on PEPE Futures has risen sharply. In fact, it surpassed November’s levels with a near 5% uptick, with the same pegged at $301.48 million at press time. Consequently, PEPE’s 20% weekly gains may be at risk of triggering liquidation cascades, especially on long positions, due to the absence of dip-buying support. This would put short-sellers in control, highlighting the need for cautious risk management. While historical patterns seemed to hint at a potential breakout, the crypto market relies on hard data, not coincidences. PEPE’s gains have been driven by leveraged liquidity rather than organic buying, making this rally vulnerable to a sharp reversal.