$PEPE
🚨Can Pepe Coin Price Surge 62% as Cup & Handle Pattern Emerges🚨
The weekly timeframe reveals the formation of a bullish cup and handle pattern in the Pepe Coin price, which could signal the start of an upward move. This pattern formed after the price of the top meme coin underwent a major downtrend that started in December and cooled down in March.
PEPE attempted to make a recovery in April, but it again faced rejection at the $0.000014 resistance that is now the neckline of this bullish pattern. The rejection led to the formation of the handle’s parallel channel.
This pattern will mature if Pepe Coin price can flip resistance at the descending parallel channel and then rise above $0.000014. If this happens, a 62% rally will commence, and this could push the price of this token to $0.0000227.
The MFI indicator is supportive of this thesis as it tips north while the price is making lows. This bullish divergence shows that buying pressure is building up even during the downtrend depicted in the downward sloping channel.
At the same time, the ADX is showing weakness in the downtrend that commenced in May until now. If bears lose control, it could pave the way for the price of Pepe Coin to recover if buyers start accumulating at lower prices.
The invalidation thesis for this forecast lies in a previous CoinGape analysis that noted that PEPE whales are exiting after netflows dropped by 97%. If whales are not willing to buy when bears are losing control, it could push the price below the channel and invalidate the cup and handle pattern.