One analyst explained that PEPE may be moving toward this goal by breaking out of its current descending channel pattern.
PEPE recently broke out of a descending parallel channel.
new post At X, analyst Ali pointed out how the 4-hour PEPE price is currently breaking out of a descending parallel channel. In technical analysis, a “parallel channel” refers to an area surrounded by two parallel trend lines where the price of a particular asset has recently moved inward.
In general, price is likely to face resistance at the top of the channel, while the bottom can act as support. For this reason, highs and lows are likely to occur naturally along each trend line.
In the context of the current discussion, parallel channels, called top-down channels, are of interest. As the name suggests, this channel indicates a downward trend in an asset.
The upper line of a descending parallel channel is drawn by connecting the lower highs of the commodity price. Likewise, the lowest level is combined with a lower low.
In general, channel breakouts can be important because they can signal the continuation of a trend. In other words, a breakout above the upper line could be a bullish signal, while a break below the lower line could be a sign that the downtrend is strengthening.
Now here is a chart shared by the analyst that highlights the descending parallel channel pattern that has been forming in the recent 4-hours price of PEPE.
Looks like PEPE has been showing a break above this pattern recently | Source: @ali_charts on X
As shown in the graph above, PEPE has been trending within this descending parallel channel pattern over the past 24 hours until the meme coin enjoyed a sharp 16% jump and broke above the upper channel level.
The sharp rise in cryptocurrency prices came as a Bitcoin spot ETF gained approval from the US SEC. BTC itself was down just 4% on this bullish news, but altcoins in the sector moved ahead and started showing significant surges.
If PEPE now appears to be breaking out of its descending parallel channel, the meme coin could be set to continue its bullish momentum, as such breakouts have often occurred historically.
Of course, this is only possible if the breakout is actually confirmed since the coin has just started to rise. On the chart, Ali plotted the levels that PEPE could reach if this bullish pattern materializes.
$0.0000016 and $0.0000019 are two price levels highlighted by analysts for the asset as they are equidistant from the half-length and full-length of the channel, respectively.
If the coin touches the former, it would be up almost 11% from current price levels, while a rise in the latter would imply an increase of over 31%.
PEPE price
After last day’s surge, the asset’s price is currently trading around $0.000001446.
The price of the asset seems to have shot up over the past day | Source: PEPEUSD on TradingView
Featured image from Shutterstock.com, chart from TradingView.com
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