Meme coins had a strong performance in November, helped by the risk-on sentiment in the crypto industry. Pepe Coin price was one of the top performers as it more than doubled in value. So, how high can the third-biggest meme coin jump in December?
Pepe Coin Price Has Positive Technicals
Technical analysis of the Pepe Coin price points to a potential comeback now that it has dropped for two consecutive weeks. The token formed a cup and handle pattern between May and November this year.
A C&H pattern forms when an asset forms a rounded bottom. In this case, the upper side of this cup was at $0.00001717, which broke out on November 13. Ideally, when this breakout happens, traders estimate the next target by measuring the depth of the cup. In the depth was about 65%. As such, if we measure 65% from $0.00001717, we estimate that the coin will rebound to $0.000028.
Pepe price has formed two other bullish patterns. First, it has created a falling wedge pattern, which has two falling and converging trendlines. This pattern often leads to a strong bullish breakout when the two lines are about to converge.
Second, Pepe coin price has formed a break and retest pattern. This pattern forms when an asset breaks above a key resistance point – in this case, $0.00001717 – and then retests it. It retested it on November 26 and formed a morning star candlestick.
Therefore, a combination of these patterns and the fact that it has remained above 50-day moving average, means that the coin will rebound in December, and possibly hit the C&H target at $0.000028. This view, however, will become invalid if the coin drops below $0.000016, a few points below the upper side of the cup.
Pepe Could Be In An Accumulation Mode
Most crypto analysts following the coin have a bullish view and expect it to stage a strong rally. In an X post, Wyckoff Insider noted that the coin was in the re-accumulation phase. As such, he expects that the final phase of the bull run was just getting started.
The Wyckoff Method is an old approach that identifies four phases of market action: accumulation, markup, distribution, and markdown. In accumulation, an asset makes little price action, while the markup is usually the most bullish section.
The other bullish case for Pepe is that it is still one of the most heavily traded meme coin. Its 24-hour volume on November 28 was $4 billion, the second one after Dogecoin. There are also signs that whales are accumulating the Pepe coin.
The post How High Can Pepe Coin Price Surge In December? appeared first on CoinGape.
