Date: Sat, May 31, 2025 | 08:06 AM GMT
The cryptocurrency market witnessed a sharp pullback over the past 48 hours, sending major tokens into the red. Bitcoin (BTC) briefly dipped to a low of $103K, while Ethereum (ETH) touched $2,500. This drop triggered steep corrections across major memecoins, including Pepe (PEPE).
PEPE saw a double-digit decline of around 11%, trimming its monthly gains to 28%. However, a well-known pattern forming on the chart suggests that a rebound may still be possible.
Broadening Wedge Setup in Play
PEPE’s 4-hour chart shows a classic ascending broadening wedge—a pattern that typically indicates high volatility and uncertainty. Although often considered bearish, it can also lead to sharp upside moves before a potential breakdown.
As seen in the chart, the latest correction began after PEPE was rejected from the upper trendline around $0.00001632 on May 23. This triggered a steep drop toward the wedge’s lower boundary.
Today, PEPE tested this lower trendline support near $0.00001096 and managed a small bounce. As of now, it’s trading around $0.00001137, just below the 200-day moving average (MA) at $0.00001189—a critical resistance level.
What to Watch Next?
If PEPE can close and sustain above the 200 MA, it could confirm a bullish reversal and send the price climbing back toward the upper trendline, potentially aiming for $0.00001770 and higher in the short term.
However, if the price fails to hold above the lower wedge support, the bearish nature of the pattern could take over, possibly leading to a breakdown below $0.00001000 and further downside.
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