PEPE poised for a breakout: Can the memecoin rally to new highs?

Pepe’s breakout targets $0.00002187 resistance, with bullish patterns signaling potential upward momentum.
Technical indicators and liquidation data highlight strong bullish sentiment, supporting a possible rally.

Pepe (PEPE) has recently appeared from a descending symmetrical triangle, which is typically linked to the possibility of a breakout in cryptocurrency trading markets.

Currently priced at $0.00002102, the token experienced a decrease of 1.18% at the time of this report. However, it demonstrated resilience and indications of growth, even amidst temporary setbacks.

Is it possible that Pepe will continue its upward trend and reach even greater peaks in the upcoming days?

PEPE’s price action shows potential

As an analyst, I observed a robust rebound in Pepe’s price action (PA), with the token finding a steady footing close to a crucial resistance level at approximately $0.00002187.

surpassing the current level might signal a bullish breakthrough, potentially paving the way for an upward trend towards approximately $0.000030, a key level of resistance ahead.

Furthermore, the symmetrical triangle breakout indicated a decrease in selling pressure and an increase in buyer enthusiasm.

If the value doesn’t exceed 0.00002187, there might be a need for another period of consolidation, where it could test its support levels around 0.00001682.

NVT ratio points to growing market confidence

The Network Value to Transactions (NVT) ratio has climbed from 48 to 60.62, suggesting a rise in on-chain transactions compared to the value of the token in the market.

This suggested renewed investor confidence as transactional activity supported the price recovery.

A larger NVT (Network Value to Transactions) ratio generally indicates continued enthusiasm for the asset, strengthening optimistic feelings among investors. Yet, for the price to keep increasing, this ratio needs to maintain a correlation with growing trading activity.

PEPE daily active addresses show steady engagement

5,143 unique active addresses were registered daily, showing a consistent level of user engagement, suggesting that a dedicated group of users are regularly interacting with Pepe, even through phases when the price remains stable or unchanged.

If the value of the token keeps increasing, an influx of daily active users might provide more evidence that the price increase is not just a temporary spike. Consequently, higher user engagement over the next few days will play a crucial role in maintaining the positive trend.

Technical indicators support bullish momentum

Pepe’s technical indicators suggested a turning point in market dynamics.

In simpler terms, the Relative Strength Index (RSI) currently reads 54.51, suggesting a moderately strong upward trend, with potential for additional growth as it’s not yet in an overbought state.

In addition, the Directional Movement Index (DMI) showed that the Positive Directional Index (+DI) stood at 21.7, the Negative Directional Index (-DI) was at 13, and the Average Directional Index (ADX) was at 22.

The Directional Movement Index (DMI) indicated that the +DI was at 21.7, -DI was at 13, while ADX was at 22. In other words, the positive momentum was stronger than the negative one, with a significant trend direction suggested by ADX being at 22.

The data indicates a pattern of reinforcement, as it appears that buyers are increasingly dominating the market. For this upward momentum to solidify, the Average Directional Index (ADX) needs to persistently increase to substantiate the robustness of the trend.

Liquidation data signals bullish sentiment

The liquidation figures revealed that $269,410 worth of short positions were eliminated, while only $35,470 in long positions were affected. This indicates a rising belief among investors that the market might be heading upwards.

The optimistic sentiment among traders gives an extra push towards the possibility of a market breakthrough. Yet, consistent purchasing power is crucial to maintain these advancements and avoid a reversal in prices.

Read Pepe’s [PEPE] Price Prediction 2025–2026

Conclusion: PEPE is ready to test new highs

Based on its emergence from a descending symmetrical triangle, along with strengthening on-chain statistics and optimistic technical signals, Pepe appears to be well-positioned for a possible price surge.

Should the value of Pepe’s token exceed the $0.00002187 barrier, it might indicate a potential path toward $0.000030. This suggests that Pepe could be on track for an upward trend as long as market conditions continue to favor it in the short term.

2025-01-05 14:16