The meme cryptocurrency PEPE shows a falling wedge formation on its chart, signaling a potential price breakout if trading volume increases. However, the overall trend remains bearish, with the asset trading below key exponential moving averages and near its lower Bollinger Band. Declining open interest and volume indicate weak market participation, maintaining downside pressure unless momentum shifts.
The price of PEPE is currently trading at $0.000003350 with a market capitalization of $1.38 billion. It recorded a 1.16% gain over the last 24 hours, with its price structure pointing toward a possible bullish reversal.
Analyst Crypto With Gopal highlighted that PEPE is forming a falling wedge on the 1-hour chart. This pattern is often associated with weakening bearish momentum as the price compresses between descending resistance and support.
“The PEPE price is compressing between descending resistance and support as selling pressure gradually fades,” the analysis noted. The tightening range suggests volatility is shrinking ahead of a potential decisive directional move.
Data from TradingView shows the asset exhibits a long-term bearish trend established between February and May. The price recently broke below short-term moving averages and the middle Bollinger Band, forming several red candles.
The asset is now falling toward its green lower Bollinger Band. A failed breakout from the wedge pattern would likely lead the price into further consolidation.
Derivatives data reveals PEPE’s open interest has dropped by 5.83%, equal to $173.32 million. This decrease suggests reduced trading activity and less hedging by market participants.
Trading volume also fell by 33.03% to $430.82 million. This decline indicates lower liquidity and diminished participation in the market.
