PEPE Price Breakout in Play, Consolidating Around Former Resistance Zone
PEPE is testing descending resistance as it broke out from its triangle. More upside expected in the short-term but two scenarios ahead.
Key Takeaways
- Breakout Above Resistance: PEPE confirmed a new bullish phase with a triangle breakout.
- Wave 3 Completion: A parabolic rally peaked at $0.000025 with strong momentum.
- Wave 4 Consolidation: The descending channel indicates a corrective pause before wave 5.
After bottoming at $0.0000065 in September, PEPE broke out of a descending triangle on Sept. 29, initiating a new bullish cycle. The rally peaked at $0.000025 on Nov. 14, marking the completion of wave 3 in a new impulsive structure.
The price is now consolidating in wave 4, retesting prior resistance at $0.000021 as support. The Relative Strength Index (RSI) is cooling but staying elevated, signaling the potential for wave 5 to push higher.
PEPE Price Analysis
PEPE maintained its upward momentum in April, climbing to $0.0000046 before surging to $0.000017 on May 27, achieving an impressive 275% gain. Following this peak, the price shifted into a downtrend.
On Aug.5, PEPE experienced a brief spike to $0.0000058 and closed at $0.0000072, indicating renewed buying interest.
However, the downtrend resumed, and the price bottomed at $0.0000065 on Sept. 6. On Sept. 29, a breakout above the descending triangle’s resistance signaled a new bull phase.
The daily chart for PEPE highlights a remarkable rally after a prolonged ABC corrective structure, confirming a significant breakout. On Nov. 14, it peaked at a new all-time high of $0.000025, which was its wave 3 in a new five-wave impulse.
The price consolidated within a descending channel, suggesting the formation of wave 4, a corrective phase within the broader bullish trend. Recently, it broke out above it and is now retesting prior resistance for support at $0.000021.
The RSI is slightly cooling from overbought territory but remains elevated, reflecting the potential for another upward leg in wave 5.
Key Observations
- Corrective Structure Ended: The WXY correction provided a strong accumulation base for reversal.
- Wave 3 Completion: The parabolic rally confirmed wave 3 with substantial bullish momentum.
- Wave 4 in Progress: Consolidation within a descending channel suggests a temporary pause before wave 5.
PEPE’s ability to hold above key support levels will determine if the trend can sustain its momentum, paving the way for higher highs in the upcoming wave 5.
PEPE Price Prediction
The hourly chart shows that its last rise from the Nov. 21 low of $0.000018 forms a lower-degree five-wave pattern.
One more high is expected in the $0.000023 area, but two scenarios are ahead following this high.
Either PEPE finished an ABC correction of a lower degree count, concluding its wave 4 of a higher degree, or its recent rise is the second sub-wave of the corrective structure.
In both cases, we can expect a short-term upside followed by a pullback.
However, the following pullback will validate the primary scenario. If the price makes a higher low above $0.000020, that could indicate that the Nov. 21 rise is the first sub-wave of the higher degree wave 5, leading to a new all-time high of $0.000030.
But if the decline continues and leads to a lower low than on Nov. 21, it will mean that its wave is still in development. In that case, we can expect an interaction with the 0.5 Fib level at $0.000016 before wave 5 can start.
Key Levels to Watch
Support Levels:
- $0.00001877: 0.382 Fibonacci retracement of wave 3.
- $0.00001667: 0.5 Fibonacci retracement, a strong potential reversal zone.
Resistance Levels:
- $0.000022: Upper boundary of descending triangle and the start of wave 5.
- $0.00002555: Previous high and target for wave 5.
- $0.00002800: 1.272 Fibonacci extension of the larger structure, potential wave 5 peak.
PEPE Gains Momentum in October — Bullish Phase May Be on the Horizon
