Pepe coin price is within a touching distance to a record high as demand for the coin rose and after it formed a bullish chart pattern. The token jumped to a high of $0.0000233 last week, its highest level in over three weeks and up by 4,200% from its lowest point in May last year.
Pepe coin price forms a bullish engulfing
The weekly chart shows that the Pepe coin token has formed a bullish engulfing pattern, which is often a bullish sign. This pattern is characterized by a big bullish candlestick that completely covers or engulfs a previous bearish candle. In most periods, an engulfing candle is one of the most bullish patterns in the market.
Pepe coin is also showing signs that it is forming a bullish pennant chart pattern. This pattern is made up of a long vertical line followed by a symmetrical triangle pattern. A pennant is often seen as one of the most bullish patterns in the market.
Pepe price has moved slightly above the 23.6% Fibonacci Retracement level. Also, it remains above all moving averages, signaling that bulls are in control for now. It has also formed a cup and handle pattern, a popular bullish sign.
Therefore, the coin will likely have a strong bullish breakout in the coming days. More gains will be confirmed if Pepe jumps above the key resistance at $0.00002585, its all-time high. A move above that level will point to more gains, potentially to $0.000030, a psychological point that is about 100% above the current level.
Pepe chart by TradingView
Potential catalysts for the Pepe token
The main catalyst for the next Pepe price action will be the performance of Bitcoin. If this coin jumps to $100,000 and then continues rising, there are odds that it will stir interest of altcoins and other meme coins.
Pepe is also a highly popular meme coin among investors and traders. For example, data by CoinGecko shows that its 24-hour volume stood at over $5 billion, third only from Dogecoin and Shiba Inu. It is not uncommon for Pepe to have more volume compared to the two bigger coins.
Pepe is also seeing robust in the futures market, where its open interest has jumped to over $258 million. The figure would be more if the platform provides data from Binance, the biggest player in the industry.
The other important benefit for Pepe coin is that it has a circulating supply of 420 trillion tokens, which is also its maximum. As such, this means that it has no risk for dilution as many meme coins do.