Cryptonews - Meme coin speculators are closely monitoring the price movements of Pepe (Pepe-PEPE)
After U.S. President Donald Trump posted something that many perceive as a promotion for this currency.
In a post on May 29 on Truth Social, Trump shared a humorous image of the Pepe frog, interpreted as a subtle promotion for the PEPE currency, which sparked widespread reactions and boosted positive price predictions for the PEPE coin, reminiscent of Elon Musk's public promotion of Dogecoin (DOGE), which helped this currency top the list of meme coins during the recent bullish market cycle.
Although Trump did not explicitly promote Pepe, his recent post caused a wave of excitement among traders hoping to replicate the remarkable successes of the DOGE currency. However, the market reaction was moderate due to broader macroeconomic pressures; following a 6% rise in the hours after the post, the price then faced an 18% correction. The volatility surrounding the U.S. International Trade Court's decision regarding the suspension of tariffs imposed by Trump is likely the main reason for this reversal, with a decline in risk appetite among investors and cautious optimism prevailing in the market.
PEPE Price Predictions: Can hype-driven speculation lead the price to new highs?
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If the U.S. President promotes this currency more clearly again, it could provide the necessary momentum to break out of the channel representing the handle in the cup and handle pattern that has been ongoing for 5 months.
The daily chart for the PEPE/USDT pair shows the formation of the cup and handle pattern. Source: TradingView, Binance. The initial reactions of investors to Trump's post led to a rise in PEPE's price towards the next resistance level, but this rise was not strong enough to successfully breach this level.
Momentum indicators currently favor the bears (short sellers), with the MACD falling further below the signal line after a recent bearish crossover, indicating a continued downward trend in the short term. Meanwhile, the Relative Strength Index (RSI) appears to be heading below the neutral line at level 52, taking a downward path; if this trend continues, sellers are likely to dominate the market and outpace buyers.
Potential social catalysts may continue this pattern, with the price likely bouncing back at the Fibonacci retracement level of 0.618 at $0.00001, which is typically considered a potential reversal point during minor corrections.
Conversely, if the price drops below the next support level, it may exit this optimistic pattern and continue to decline towards the next support level at $0.000008. If the price rises strongly by mid-June, the cup and handle pattern suggests the potential for gains of about $0.000026, indicating a 100% increase from the current price.
