The Memecoin’s MEME token is currently making waves in the cryptocurrency market as a new analysis shows a potentially explosive bullish move on the horizon.
According to a report by a prominent crypto analyst on X with handle World of Charts, the Memecoin has broken out of a classic falling wedge pattern, a bullish signal often associated with trend reversals and upward price momentum.
This chart pattern, typically recognized for its reliability in predicting breakouts, indicates that MEME could be gearing up for a significant rally.
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The analyst noted that the falling wedge is a bullish formation, often signaling a potential reversal or a break in a downtrend.
This wedge exhibited a consistent pattern of lower highs and lower lows that converge over time, showcasing a diminishing bearish momentum.
The recent breakout above the upper boundary of the wedge is particularly encouraging, suggesting that upward movement may be on the horizon.
Analyst Sees Potential Rally
The blue box on the right side of the chart indicates a target zone, showing an anticipated price increase between 150% and 200%.
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This projection is obtained from the height of the wedge pattern, a common method in technical analysis used to estimate potential price movements following a breakout.
If the price maintains its position above this line, it could validate the breakout and enhance the likelihood of further upward momentum.
The price may encounter resistance at previous levels where it had struggled to break through before. Identifying these resistance levels is crucial for traders aiming to navigate this potential rally.
