PEPE Soars 62%, But Analyst Cautions About Possible Pullback

Pepe has experienced a notable surge in value over the past week. However, a cryptocurrency analyst has indicated that this rise may be a precursor to a decline.

Key Takeaways

PEPE's price has increased by over 60% recently, reaching a peak of $0.00000725.
Other meme tokens like Dogecoin and Shiba Inu have also seen gains, but not as substantial as PEPE.
Technical analysis indicates a potential bearish scenario, as the price approaches a critical breakdown level.
Analyst Ali Martinez suggests that a retest of the neckline could precede a drop to $0.0000015.

PEPE

PEPE has risen significantly, surpassing a 60% increase and outshining many other cryptocurrencies. Despite this impressive performance, technical analysis suggests that a pullback could be imminent. Analyst Ali Martinez has pointed out a possible retest of a critical price level known as the neckline of a Head-And-Shoulders pattern, which could lead to downward movement for the memecoin.

PEPE's Significant Rise

At the start of 2026, PEPE made waves by increasing more than 60%, positioning it as the top-performing asset among the top 50 cryptocurrencies by market capitalization. During its peak last Sunday, the price reached $0.00000725 before retracing to $0.00000676.

Pepe Price Chart
The price trend of PEPE over the past month | Source: PEPEUSDT on TradingView

Other meme tokens have also had noteworthy movements this week, with Dogecoin up 17% and Shiba Inu rising 15%. However, these gains are minor compared to the remarkable 62% rise seen by PEPE. Despite this strong performance, some technical analysis suggests future challenges for the memecoin.

Analyzing the Technical Patterns

In a recent update on X, analyst Ali Martinez discussed the latest movements in PEPE's price through the lens of technical analysis. He noted that the coin was previously forming a Head-And-Shoulders pattern.

PEPE Pattern
The price of PEPE has surged towards the neckline again | Source: @alicharts on X

The Head-And-Shoulders pattern is identifiable by three peaks: two of similar height called the "shoulders" and a larger middle peak known as the "head." There is also a horizontal line called the "neckline," where the price tends to find support. After forming the right shoulder, another retest is often seen before a potential drop occurs.

The chart shows that PEPE's price fell below its Head-And-Shoulders neckline last year, leading to a bearish trend that reached a low in December. However, the recent rally in 2026 has brought the price closer to this neckline again. While this might seem like a bullish sign, the analyst warns that the outcome could be different.

As Martinez puts it, “this could be a simple retest of the breakdown before a move to $0.0000015.” The behavior of the price during this retest will be crucial to determining the next steps for PEPE.

Furthermore, PEPE isn't the only memecoin facing bearish developments in technical analysis. In another post, Martinez pointed out that Floki, which surged over 40% recently, is showing sell signals on the Tom Demark (TD) Sequential indicator.

Floki TD Sequential
The TD signal on Floki's 12-hour price chart | Source: @alicharts on X