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PEPE Eyes 75% Rally on Bullish Wedge Setup
The cryptocurrency market has been witnessing a tumultuous ride in recent times. One such asset, PEPE, is showing promise with the formation of a bullish falling wedge setup on its 4-hour chart. This development suggests that the downward pressure is weakening, and it’s time for buyers to take control.
According to experts, when a price chart forms a bullish falling wedge pattern, it usually indicates a potential reversal in market sentiment. As PEPE/USDT has formed this pattern at $0.00001140, traders can expect a substantial 75% rally if the breakout is confirmed.
Before we dive deeper into the analysis, it’s essential to acknowledge that the price remains below the 50-period Exponential Moving Average (EMA), which serves as dynamic resistance at $0.00001237. For the bullish setup to become valid, PEPE/USDT must break above this EMA and wedge resistance line.
It’s crucial to monitor trading volume as it should surge upon a breakout, validating the reversal and providing a solid foundation for further growth. If the price fails to break out and instead continues its downward trajectory, bears may continue their control, leading to further losses.
The Directional Movement Index (DMI) on the 4-hour chart has revealed early bullish momentum, as the positive directional indicator (+DI) rose above the negative directional indicator (-DI). This positioning indicates a slight advantage for buyers. However, the Average Directional Index (ADX) remains below the key 25 threshold, which signifies that the market is still in a weak or indecisive state.
The recent price action has resulted in an oversold condition on the Relative Strength Index (RSI), currently trading at 35.69. This level indicates reduced short-term momentum and growing downside pressure. Despite not entering the oversold zone just yet, this drop does suggest that buying interest is waning, and sellers are gaining control.
In conclusion, a potential 75% rally for PEPE/USDT is possible if the price breaks above both the EMA and wedge resistance line.
Source: coinchapter.com
