Pepe has witnessed a sharp rally over the past week, but a cryptocurrency analyst has warned it could turn out to be a setup for another move down.
Pepe Has Shot Up Over The Past WeekThe Head-And-Shoulders is a pattern that’s characterized by a series of three price peaks. The first and third peaks are of a roughly similar height and form the “shoulders,” while the central peak stands out as the largest and is known as the “head.”
The pattern involves one more element, a horizontal line that’s called the “neckline.” Between the peaks, the price retests this level and finds support at it. Once the right shoulder has formed, however, the next retest is considered likely to lead to a bearish breakdown.
As is visible in the graph, the daily Pepe price saw a fall below the neckline of its Head-And-Shoulders pattern last year. This led to a period of sustained bearish action, culminating in a low in December. With the rally that has occurred in the cryptocurrency’s price in 2026 so far, however, it has closed back the distance to the neckline. While the development looks bullish, the analyst thinks a different outcome could follow for the coin.
