Pepe has witnessed a pointy rally over the previous week, however a cryptocurrency analyst has warned it may grow to be a setup for an additional transfer down.
Pepe Has Shot Up Over The Previous Week
PEPE has taken off to start out 2026 because the memecoin’s value has gone up by greater than 60%, considerably outperforming all cryptocurrencies within the prime 50 by market cap listing. On the top of the rally, the asset touched $0.00000725 on Sunday, but it surely has since seen some retrace again to $0.00000676.
Different meme-based tokens have additionally witnessed rallies not too long ago, with Dogecoin and Shiba Inu being up 17% and 15% over the previous week, respectively. However clearly, these pale compared to the 62% earnings that Pepe has managed in the identical window. Although the memecoin’s rally has been spectacular up to now, technical evaluation (TA) may very well level towards a bearish final result.
PEPE Approaching A Retest Of Head-And-Shoulders Breakdown Stage
In a brand new put up on X, analyst Ali Martinez has talked concerning the current PEPE value motion from a TA perspective. Because the chart shared by Martinez exhibits, the memecoin was earlier forming a Head-And-Shoulders sample.
The Head-And-Shoulders is a sample that’s characterised by a sequence of three value peaks. The primary and third peaks are of a roughly comparable top and type the “shoulders,” whereas the central peak stands out as the biggest and is named the “head.”
The sample includes yet one more factor, a horizontal line that’s referred to as the “neckline.” Between the peaks, the value retests this stage and finds assist at it. As soon as the precise shoulder has shaped, nonetheless, 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 up to now, nonetheless, it has closed again the gap to the neckline. Whereas the event seems bullish, the analyst thinks a special final result may observe for the coin.
As Martinez famous, “this could possibly 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 not too long ago. Because the analyst has highlighted in one other X put up, Floki, which has loved a surge of over 40% up to now week, has seen a promote sign on the Tom Demark (TD) Sequential.
