Pepe coin price is showing signs of bottoming, pointing to a strong bullish breakout in the coming days. The token bottomed at $0.000005740 on Wednesday, up slightly from the year-to-date low of $0.000005238. This article explains why the Pepe price may stage a strong comeback.
Pepe Coin Price Technical Analysis
The daily chart shows that the Pepe price is hovering near the crucial support level at $0.000005853, where it failed to move below in August last year and last month. This is a sign that bears fear placing short trades below this level.
Most importantly, the Pepe coin has formed a giant triple-bottom pattern whose neckline is at $0.00002835. A triple bottom is a highly popular bullish reversal sign in technical analysis.
The coin has also formed an inverse head-and-shoulders pattern, another sign of a potential bullish reversal. This is happening after it formed a falling wedge pattern with converging trendlines.
Technical indicators, such as the MACD and RSI, point upward, indicating a bullish divergence.
Therefore, the coin is highly likely to bounce back in the next few days. If this happens, the initial level to watch will be $0.000017, the 50% retracement point. This target is also slightly below the strong pivot reverse level of the Murrey Math Lines tool, roughly 150% above the current level.
The bullish Pepe price forecast will become invalid if the coin crashes below the key support level at $0.000005853. Such a move could indicate further declines in the longer term.
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Top Catalysts for Pepe Price Surge
There are three key potential catalysts for the Pepe price surge. First, the trade tensions that clouded the market faded after Donald Trump paused most tariffs. The tariff issue forced many people to start predicting that the US would move into a recession later this year.
Second, given the downward movement in inflation, the Pepe coin price will be boosted by the potential Federal Reserve interest rate cut. Analysts expect the data to show that the headline Consumer Price Index (CPI) dropped to 2.6% in March from a high of 3.0% in January. Low inflation, especially when crude oil prices are falling, will point to further interest rate cuts by the Federal Reserve.
Third, Pepe has bullish on-chain metrics. The Mean Dollar Invested Age (MDIA) over the last 365 days has jumped to a record high, a sign that core investors are not selling the coin.
The MVRV indicator has plunged to its lowest level in over a year, indicating the coin may now be significantly undervalued. That is a sign that investors may want to buy the dip in the next few weeks.
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