PEPE is shaping a bullish inverse head and shoulders pattern, with a potential 40% rally if it breaks through the $0.0000075 resistance level.
PEPE PEPE $0.000007 24h volatility: 5.0% Market cap: $3.04 B Vol. 24h: $440.61 M , the third-largest meme token by market capitalization, is showing signs of a potential breakout despite the ongoing slump in the broader meme coin market. Crypto analyst Ali Martinez has identified a pretty promising technical setup for the cryptocurrency.
Martinez noted on X that PEPE has been forming an inverse head and shoulders (H&S) pattern on the hourly chart since the beginning of March. This pattern, typically a bullish indicator, has a neckline resistance at $0.0000075.
$PEPE is shaping up an inverse head-and-shoulders, hinting at a breakout to $0.0000105! pic.twitter.com/h1gWhgJVl6
— Ali (@ali_charts) March 17, 2025
Martinez explained that the recent price movement, which formed part of the right shoulder, could be setting the stage for a breakout. If PEPE successfully breaches the $0.0000075 resistance level, it could trigger a 40% rally.
Martinez has set a price target of $0.000010 for such a case.
PEPE Price Outlook
According to data from CoinMarketCap, PEPE is currently trading at $0.0000070, marking a 2.8% increase over the past 24 hours. Its market cap stands at $2.95 billion, making it the 33rd largest cryptocurrency by valuation.
On the daily PEPE price chart, the MACD line has just crossed above the signal line, indicating early signs of upward momentum.
Meanwhile, the price is nearing the middle Bollinger Band (SMA). If buyers step in, the token could move toward the upper band around $0.0000085.
On the other hand, the RSI sits at 44, which is below the neutral level. This indicates mild bearish momentum. If the RSI continues downward motion, it could signal oversold conditions and potentially spark a price rebound.
Meme Coin Market Struggles
PEPE’s potential bullish breakout comes at a time when the meme coin market is facing major headwinds. The sector, which boomed to a combined $130 billion market cap in December 2024, has since plunged to around $48.14 billion, a staggering 63% drop.
The decline is noteworthy given US President Donald Trump and the fist lady launched their own meme coins in January. The slump reflects the oversaturation of the sector, which has diluted investor interest, especially after the recent LIBRA pump-and-dump scheme.
Over the past month, PEPE has experienced a 30% decline, leaving it 75% below its peak of $0.00002825, which was achieved in December 2024.
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