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An analyst has pointed out how a 78% price move could be coming for Pepe based on a technical analysis (TA) pattern forming in its daily chart.
PEPE Is Approaching The End Of A Symmetrical Triangle
In a new post on X, analyst Ali Martinez has shared a TA pattern forming in the 1-day price of Pepe. The pattern in question is a «Symmetrical Triangle,» which forms when an asset observes consolidation between two trendlines approaching each other at a roughly equal and opposite slope.
The upper line of the pattern acts as a resistance barrier, while the lower one provides support. Together, they make it so that the price remains stuck in the channel between them, and since the trendlines involved here are of the converging type, the asset’s range shrinks as it moves inside the triangle.
An escape out of either of these bounds can imply a continuation of trend in that direction. That is, a break above the triangle can be a bullish sign, while a decline under it a bearish one.
Now, here is the chart shared by Martinez that shows the Symmetrical Triangle that the 1-day PEPE price is currently trading inside:
As is visible in the above graph, Pepe has been stuck inside this channel since December of last year, but its price is now not far from the apex. Generally, breakouts become more likely to occur the tighter an asset’s range is, as it means retests happen more frequently.
With the memecoin standing inside the narrow tip of the triangle now, its range is quite small, so an escape could be probable to occur in the near future. Symmetrical Triangles are usually considered to have an equal bias in both directions, so a possible breakout could occur in either direction for the asset.
Triangle breakouts are generally of the same length as the base of the triangle (that is, the distance between the trendlines at their widest). Based on this, the analyst believes the memecoin may be gearing up for a 78% move.
It now remains to be seen how the price of the cryptocurrency will develop in the near future and which side of the Symmetrical Triangle a breakout would take place.
The Symmetrical Triangle is just one type of triangles that exist in TA. Another popular variant is the Ascending Triangle, which forms when the upper trendline is parallel to the time-axis. As Martinez has pointed out in another X post, Solana has seen a breakout above such a triangle on the daily timeframe.
«Solana $SOL may retest the breakout zone at $210 before pushing toward the $320 target!» explains the analyst.
PEPE Price
At the time of writing, Pepe is trading around $0.00001137, up more than 9% over the last week.
