PEPE is poised for a rally if it closes above its descending trendline
Pepe price surged over 15.65% on Wednesday and closed above the 50-day Exponential Moving Average (EMA) at $0.0000093. At the time of writing on Thursday, it is breaking above the descending trendline and trades above $0.000010.
If the PEPE daily candlestick breaks above the descending trendline and closes above $0.0000099, it would rally 24% from its current level to retest its 61.8% Fibonacci retracement level at $0.000012.
The Relative Strength Index (RSI) on the daily chart reads at 59, above its neutral level of 50, indicating that bullish momentum is gaining traction. Additionally, the Moving Average Convergence Divergence (MACD) indicator on the daily chart is about to flip a bullish crossover on Thursday, giving a buy signal and indicating upward momentum.
PEPE/USDT daily chart
However, if PEPE fails to close above the descending trendline and declines, closing below its 50-day EMA at $0.0000093, the bullish thesis would be invalidated. This scenario could lead to a future decline in Pepe’s price to retest its November 4 low of $0.0000077.
