After soaring to a record high in December, the Pepe coin price has tumbled by over 70% and is hovering at its lowest level since November 5. While Pepe’s trend remains bearish, it has formed a bullish falling wedge pattern, while the MVRV-Z score has moved to the buy zone, pointing to a 245% surge.
Pepe Coin Price Rare Pattern Nears Confluence
Pepe, the third-biggest meme coin, has remained in a bear market after peaking at the record high of $0.00002830 in December. This retreat, while painful to holders, is part of the formation of a falling wedge chart pattern.
A falling wedge pattern is made up of two declining and converging trendlines. In Pepe’s case, its upper side has connected the higher highs since December, while the lower side has linked the lower lows since November.
In this pattern, a strong bullish breakout typically happens when the two lines are about to converge. This is what is happening now, meaning that the Pepe price will rebound soon. Such a move would signal a potential surge to the all-time high of $0.00002830, the highest swing in December.
More Technical Indicators Pont to a Pepe Price Surge
Additionally, other technical indicators are signaling that the Pepe coin price may surge soon. One of these indicators in the chart above is the percentage price oscillator or PPO, which has formed a bullish divergence pattern. PPO is an indicator derived from the MACD that helps to show divergences and convergences. In this case, it flashed a buy signal on February 13 and has continued rising, a sign that it has formed a bullish divergence.
The other indicator is the Relative Strength Index, which has been in a downward trend since November. It has moved upwards recently and crossed the descending trendline, a sign that a divergence is happening.
Pepe MVRV Indicator Moves to the Opportunity Zone
Meanwhile, the Market Value to Realized Value (MVRV) indicator has moved to the opportunity zone, signaling that Pepe Coin is relatively cheap now. Santiment data shows that the MVRV-Z score peaked at 2.74 in November, and has been in a strong downtrend as the coin has fallen. It has now reached a low of -0.576.
The MVRV-Z score indicator reached this level lastly in February last year and the Pepe price exploded higher. This meas that the same may happen this time too. Besides, the MVRV is now backed by the bullish divergence and the falling wedge pattern.
Pepe Coin Targets
Therefore, with these bullish signals, there is a likelihood that the Pepe coin price will surge to $0.00002830. That will be up 245% from the current level. This Pepe price forecast will become invalid if it crashes below $0.0000060, the lowest swing in August.
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