Here’s why the Pepe Coin price could soon explode

The price of Pepe coin is within touching distance of a record high as demand for the coin increased 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 a 4,200% increase from its low in May last year.

Pepe coin price is forming a bullish engulfment

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 large bullish candle that completely covers or engulfs a previous bearish candle. On most time frames, an engulfing candlestick is one of the most bullish patterns in the market.

Pepe coin is also showing signs of forming a bullish pennant chart pattern. This pattern consists of a long vertical line followed by a symmetrical triangle pattern. A pennant is often considered one of the most bullish patterns in the market.

Pepe price has risen slightly above the 23.6% Fibonacci retracement level. It also remains above all moving averages, signaling that bulls are in control for now. A cup and handle pattern has also formed, a popular bullish sign.

Therefore, the coin is likely to witness a strong upward breakout in the coming days. Further gains will be confirmed if Pepe breaks above key resistance at $0.00002585, its all-time high. A move above this level suggests further gains, possibly to $0.000030, a psychological point about 100% above current levels.

Pepe Chart by TradingView

Possible catalysts for the Pepe token

The main catalyst for the next Pepe price action will be the performance of Bitcoin. If this coin rises to $100,000 and then continues to rise, there is a chance that it will attract interest from altcoins and other meme coins.

Pepe is also a very popular meme coin among investors and traders. Data from CoinGecko, for example, shows that its 24-hour volume was over $5 billion, ranking only third behind Dogecoin and Shiba Inu. It is not uncommon for Pepe to have a larger volume compared to the two larger coins.

Pepe is also looking resilient in the futures market, where his open interest has risen to over $258 million. The number would be higher if the platform provided data from Binance, the industry’s largest player.

The other important advantage of Pepe Coin is that it has a circulating supply of 420 trillion tokens, which is also its maximum. This means that it is not at risk of dilution, as is the case with many meme coins.