Pepe Shows Bullish C-to-D Extension Pattern With Potential Rally

Pepe (PEPE) is forming a bullish C-leg to D-leg extension while trading at daily support. With multiple technical confluences in play, the setup suggests potential for an impulsive rally higher.

Pepe’s price action is currently consolidating at a crucial support zone that holds multiple bullish technical signals. With the 0.618 Fibonacci retracement and the point of control aligning here, the foundation for continuation appears strong. The ongoing development of a C-to-D extension pattern is further enhancing bullish sentiment, indicating that Pepe may be preparing for a rally above the value area high.

Key Technical Points:

- Strong Support Zone: Daily support aligns with the 0.618 Fibonacci retracement and point of control.
- C-to-D Extension in Progress: Pattern suggests continuation toward higher levels once momentum returns.
- Macro Bullish Structure: Higher-low projections remain intact, reinforcing the case for a new higher high.

Pepe’s current support level is one of the most important technical zones for its ongoing market structure. The 0.618 Fibonacci retracement, often considered the “golden ratio” for reversals and continuation, is paired with the point of control, highlighting a dense area of trading volume and demand. This confluence provides the market with a strong base for potential expansion.

The bullish C-leg to D-leg extension currently being established suggests the market is preparing for another impulsive rally. Such harmonic patterns typically indicate a continuation of trend when demand holds at critical retracement levels. If Pepe sustains above daily support and accelerates higher, the next leg of this pattern will likely drive price action above the value area high.

From a macro perspective, Pepe’s market structure remains decisively bullish. The higher-low projections continue to signal strength, maintaining a structural path toward new highs. As long as price action respects this projection, the bullish trend remains valid. A rotation toward the highs would reinforce this macro outlook and potentially set the stage for a new higher high in the weeks ahead.

What to Expect in the Coming Price Action:

As long as Pepe holds daily support at the confluence of the 0.618 Fibonacci and point of control, the probability of continuation increases. A sustained rally could complete the C-to-D extension and push price above the value area high. However, failure to defend support would weaken the bullish case and delay the pattern’s completion.