PEPE Explodes 62%, But Analyst Warns Of Breakdown Retest
Pepe has witnessed a pointy rally over the previous week, however a cryptocurrency analyst has warned it might turn into a setup for an additional transfer down.
Pepe Has Shot Up Over The Past Week
PEPE has taken off to begin 2026 because the memecoin’s value has gone up by greater than 60%, considerably outperforming all cryptocurrencies within the high 50 by market cap record. At the peak of the rally, the asset touched $0.00000725 on Sunday, but it surely has since seen some retrace again to $0.00000676.
Other meme-based tokens have additionally witnessed rallies just lately, with Dogecoin and Shiba Inu being up 17% and 15% over the previous week, respectively. But clearly, these pale compared to the 62% earnings that Pepe has managed in the identical window. Though the memecoin’s rally has been spectacular to this point, technical analysis (TA) may very well level towards a bearish final result.
PEPE Approaching A Retest Of Head-And-Shoulders Breakdown Level
In a brand new post on X, analyst Ali Martinez has talked concerning the current PEPE value motion from a TA perspective. As the chart shared by Martinez reveals, the memecoin was earlier forming a Head-And-Shoulders sample.
The Head-And-Shoulders is a sample that’s characterised by a collection of three value peaks. The first and third peaks are of a roughly related peak and type the “shoulders,” whereas the central peak stands out as the most important and is called the “head.”
The sample includes yet one more aspect, a horizontal line that’s known as the “neckline.” Between the peaks, the worth retests this degree and finds assist at it. Once the suitable shoulder has fashioned, nevertheless, the subsequent retest is taken into account more likely to result in a bearish breakdown.
As is seen within the graph, the each day Pepe value noticed a fall under the neckline of its Head-And-Shoulders sample final 12 months. This led to a interval of sustained bearish motion, culminating in a low in December. With the rally that has occurred within the cryptocurrency’s value in 2026 to this point, nevertheless, it has closed again the gap to the neckline. While the event appears bullish, the analyst thinks a special final result might comply with for the coin.
As Martinez famous, “this might be a easy retest of the breakdown earlier than a transfer to $0.0000015.” It now stays to be seen how the retest of the extent, if one follows, will go, and whether or not it can lead to one other rejection for PEPE.
Pepe isn’t the one memecoin that has seen bearish developments in TA just lately. As the analyst has highlighted in one other X post, Floki, which has loved a surge of over 40% previously week, has seen a promote sign on the Tom Demark (TD) Sequential.
