PEPE Price Forecast: Technical Breakout Sets Up 45% Upside Into Q1

Pepe (PEPE) kicked off 2026 with a bang, surging by as much as 80% in the first few days of January, adding billions to its market cap and reigniting the memecoin frenzy.

As of Jan. 6, the memecoin was trading for around $0.0000067, up 62% since the year’s beginning, leading a broader sector revival where memecoins collectively surged by up to 30%.

This rally, fueled by post-holiday buying and tax-loss harvesting rebounds, had traders buzzing about its potential ceiling. Let’s examine their PEPE price targets in detail.

A 45% Rally Likely Next, Per PEPE’s Falling Wedge Setup

PEPE is exhibiting a classic falling wedge pattern on the chart; this occurs when the price makes lower highs but maintains a flat bottom support, squeezing tighter over time like a coil ready to spring up.

Recently, the memecoin bounced cleanly off the top trendline (the white one in the image) and is pushing higher with good volume. This kind of bounce often leads to a breakout above the wedge, as the chart from analyst Davie Satoshi shows below.

PEPE has entered the breakout stage of its prevailing falling wedge pattern, and if the buying momentum keeps going, it could head to the green target zone around $0.000010 by the end of Q1 2026.

That would mean about 45% gains from today’s price (~$0.0000069).

PEPE Retests Head-and-Shoulders Neckline After Breakdown

PEPE’s price action continues to revolve around its head-and-shoulders structure, with the token now retesting the broken neckline near $0.00000658 following an initial breakdown.

Such post-breakdown retests are common and often decide whether a bearish pattern remains valid or gets invalidated. The neckline also overlaps with the 50-period EMA (the red wave), strengthening it as a key inflection zone.

A sustained move above this confluence would undermine the H&S thesis and shift upside focus toward the 0.618 Fibonacci level near $0.00001186. That’s up 75% from the current price levels.

Conversely, rejection at resistance would keep the bearish structure intact, reopening downside risk toward the $0.00000144 measured target.