Here’s Why Pepe Coin Price Sees a 20% Breakout Rally in May

Extended Correction in Cryptocurrency Market

Amidst a market sell-off, the cryptocurrency market exhibits an extended correction trend. Bitcoin price plummeted to a low of $61,000 on Tuesday. The memecoin Pepe, inspired by the Frog-theme, experienced a significant decline of 7.3%, struggling to maintain its value above the 38.2% Fibonacci retracement level at $0.0000065.

Bullish Pennant Pattern Emerges

Despite the market correction, analysis of the 4-hour chart indicates that the Pepe coin price is forming a bullish pennant pattern. This pattern signifies the potential for an uptrend continuation.

Large-Scale Withdrawal of PEPE Tokens

A large-scale withdrawal of 329.3 billion PEPE tokens, valued at approximately $2.46 million, from Binance within 10 hours was observed. This transaction suggests that "smart money" anticipates a potential rebound in Pepe price and a resumption of the rally.

Technical Indicators

• Moving Average Convergence Divergence (MACD): The MACD and Signal lines hover around the midline, indicating market uncertainty. A breakout from the pennant pattern could provide the necessary conviction for a bullish rally.
• Exponential Moving Average (EMA): The coin's price trading above the 200-day EMA slope suggests bullish sentiment in the near-term market cycle.

Potential Breakout and Rally

The PEPE price is well-positioned to break the overhead trendline of the pennant pattern. This breakout would provide support for buyers to extend the recovery rally to $0.000009 and potentially to $0.0001084.

Conclusion

The Pepe coin price exhibits a bullish pennant pattern, indicating the potential for an uptrend continuation. The recent large-scale withdrawal of PEPE tokens further supports this potential rebound. Technical indicators suggest market uncertainty, but a breakout from the pennant pattern could provide the necessary conviction for a bullish rally.