■ Testing the classic rounded bottom resistance
On the four-hour chart, the PEPE token has formed a classic rounded bottom - a known bullish reversal pattern that often indicates a shift from a downtrend to an uptrend.
This formation began after the PEPE token was rejected from the resistance level around $0.00001510 on May 13, triggering a sharp correction of nearly 20%, dropping to $0.00001237 by May 17.
Since then, the PEPE coin has experienced a strong bounce of 22%, steadily rising towards the main resistance level. Currently, it is trading at $0.00001458, just below the neck line. A breakout above the $0.00001510 level will confirm the rounded bottom and could spark a continuation of the uptrend.
■ What’s next for PEPE?
If PEPE can decisively close above the neck line at $0.00001510, the expected breakout target (based on the pattern's depth) indicates a move towards $0.00001800 - a potential increase of 23% from its current levels.
Much will depend on the broader altcoin market. Ethereum (ETH) is currently testing a strong resistance level near $2700, and a breakout could serve as a favorable wind, pushing altcoins like PEPE through key resistance levels.