Date: Tue, February 18, 2025 | 04:10 PM GMT
The cryptocurrency market continues to face heavy selling pressure, with Bitcoin dominance surging by dramatic 1.34% in the last 24 hours, now sitting at 61.47%. This increased dominance has weighed heavily on altcoins and memecoins, leading to sharp corrections across the board.
Amid this downturn, Pepe (PEPE) has experienced a significant decline, with today’s 8% drop pushing its 30-day correction past 45%.
However, technical indicators suggest a potential bullish reversal, with a broadening wedge pattern signaling the possibility of an upcoming breakout.
Broadening Wedge Setup]
According to crypto analyst @JohncyCrypto, PEPE is on the verge of breaking out from the broadening wedge resistance on the 4-hour chart—a pattern that has been in play since its rejection from the January 17 high of $0.000021. Since then, PEPE has seen a significant pullback, now trading at $0.0000091, just above a key support zone.
If PEPE successfully bounces off the support zone and confirms a breakout, analysts anticipate an 80% surge, with key resistance levels at $0.00001050, $0.00001210, $0.00001480, $0.00001600, and ultimately $0.00001800—which aligns with the broader resistance zone highlighted on the chart.
The broadening wedge pattern suggests increased volatility, and a breakout could trigger a strong bullish impulse, pushing PEPE toward these levels. Additionally, the volume profile shows a notable increase in buying interest around the support zone, further strengthening the case for a potential uptrend continuation.
What’s Next?
PEPE is currently testing the upper resistance of the broadening wedge, and technical indicators suggest it could be preparing for a breakout. However, traders should keep a close eye on Bitcoin dominance and Ethereum’s price action, as they could heavily influence PEPE’s next move.
If Bitcoin remains strong, PEPE could struggle to gain momentum, but a breakout above resistance could mark the start of a major recovery rally.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.