After an impressive early-year rally, Pepe Coin (PEPE) has faced turbulence in recent days, shedding nearly 10% of its value on May 19. This decline followed broader market unease triggered by Moody’s recent downgrade of U.S. debt—an event that rippled through both crypto and equities. Still, beneath the red candles lies a compelling story: PEPE’s chart is quietly flashing bullish signals that could set the stage for a climb back to its all-time high of $0.0000283 before 2025 wraps up.
A Technical Setup That Hints at Momentum
Despite the recent sell-off, PEPE’s technical structure remains promising. One of the most telling indicators is the formation of a bullish flag pattern on the daily chart—a classic continuation signal in technical analysis. Typically, this pattern emerges after a strong upward move (which PEPE saw earlier this month when it jumped from $0.000007534 to over $0.00001534), followed by a period of sideways consolidation. This “pause” often precedes another surge, making it a pattern traders watch closely.
Additionally, PEPE has printed a double-bottom formation with a base around $0.00000577. This is another historically bullish setup, especially when the neckline aligns with the asset’s previous peak. In this case, that neckline is none other than PEPE’s all-time high, adding further weight to the case for a potential breakout.
Perhaps most notably, PEPE’s chart is edging toward a golden cross—a bullish signal that occurs when the short-term 50-day weighted moving average (WMA) crosses above the long-term 200-day WMA. This crossover often signals a long-term upward trend and could boost investor sentiment significantly if it materializes.
What’s Driving the Optimism?
While charts paint one part of the picture, on-chain and fundamental factors add another layer to the bullish thesis. For starters, investor engagement remains high. Data from Etherscan reveals that PEPE now has over 435,000 unique holders, underscoring its staying power and viral appeal within the meme coin ecosystem.
Moreover, the coin continues to attract massive trading volumes—its recent 24-hour volume of $2.4 billion rivals and even surpasses that of other prominent meme coins like Shiba Inu and newer entrants like Official Trump. Such liquidity not only suggests sustained interest but also allows for quicker recoveries when sentiment improves.
Also worth noting is PEPE’s positive funding rate in the futures market. A positive rate indicates that long-position holders are paying to keep their trades open—signaling bullish sentiment among traders betting on a price increase.
Broader Tailwinds from Ethereum?
Interestingly, PEPE’s fate may also be tied to Ethereum’s trajectory. As an ERC-20 token, any significant surge in Ethereum’s price (which some analysts predict could hit new highs this year) could act as a catalyst for PEPE and other Ethereum-based meme coins. In bull markets, meme coins often outperform larger caps due to their high volatility and social media-driven nature.
Risks and Reversal Zones
Of course, this optimistic outlook is not without caveats. PEPE needs to hold above the psychological support of $0.000010 to maintain its bullish structure. If it dips below that level, technical momentum could wane, and prices may revisit the previous double-bottom zone near $0.00000577.
However, as long as PEPE remains above key supports and continues to enjoy community backing and trading activity, the $0.0000283 all-time high remains within reach—even if the journey is riddled with ups and downs.
Final Thoughts
While meme coins like PEPE are inherently volatile and speculative, their explosive nature also offers upside opportunities that few other assets can match. If technical patterns play out and bullish sentiment persists, a return to its all-time high by late 2025 isn’t just a fantasy—it’s a possibility. But as always, timing and risk management will be crucial for anyone betting on the frog-themed token’s next leap.
