One analyst explained how PEPE’s daily close outside a certain price range could lead to a 54% rally in its value.
PEPE symmetrical triangle could hint at Memecoin’s next move.
new post At X, analyst Ali discussed recent trends in PEPE prices. According to analysts, Memecoin is currently forming a symmetrical triangle pattern on the 1-day chart.
Here, “symmetrical triangle” refers to a pattern in technical analysis (TA) that, as the name suggests, looks like a triangle. This pattern has two lines of interest along which asset prices consolidate over a period of time.
The upper line connects the successive tops and the lower line connects the bottoms. The main characteristic of this pattern is that these two lines approach each other at approximately equal and opposite slopes (hence the name “symmetry”).
There are other triangle patterns in TA, but these have either lines at different angles (in the case of a wedge) or one line parallel to the time axis (rising and falling triangles).
Like other TA patterns that indicate a consolidation phase, the lines of the symmetrical triangle also serve as potential reversal points in price. The upper line usually provides resistance (forming a top), while the lower line may provide support (forming a bottom).
If a breakout occurs at one of these lines, the price may show continued momentum in that direction. This means that a breakout above the triangle may be a bullish signal and a breakout below may be a bearish signal.
A symmetrical triangle can be viewed as a market phase where the uptrend and downtrend are stagnating and prices are moving sideways. During the break, one of these wins and the price action continues in that direction.
Naturally, in this pattern, as the lines converge towards the central point, the closer the asset price gets to the apex of the triangle, the more likely a breakout becomes.
Below is a chart shared by Ali that highlights the symmetrical triangle pattern that PEPE has been trading recently.
Looks like the asset's price is getting closer to the converging point of the pattern | Source: @ali_charts on X
As can be seen in the graph, the daily price of PEPE is recently approaching the peak of the triangle, suggesting that a change in direction may be coming for memecoin.
“Watch out for a daily close outside the range of $0.00000793 – $0.00000664, which could lead to a 54% rise in PEPE,” explains the analyst. Given the pattern that has formed, it now remains to be seen how asset prices will develop from here.
PEPE price
As of this writing, PEPE is trading at around $0.000006868072, up 3% over the past week.
The price of the memecoin appears to have gone down recently | Source: PEPEUSD on TradingView
Featured image from Shutterstock.com, chart from TradingView.com
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