PEPE Forms Bullish Pattern Mirroring August 2024 as Downtrend Winds Down

Key Takeaways

• PEPE completed a complex W-X-Y-X-Z correction.
• The five-wave structure suggests a reversal may be underway.
• A retest of support is likely before the next major move up.

PEPE has recently completed a major corrective structure labeled W-X-Y-X-Z on the 4-hour timeframe, finding strong demand in a historical accumulation zone. 

The recovery from the April 7 bottom aligns with the beginning of a new impulsive structure, though a short-term pullback may be underway. 

While the broader structure appears bullish, a final dip toward support may offer a better entry before further upside potential unfolds.

PEPE Price Analysis

The 4-hour chart shows PEPE bottomed at $0.0000057 on April 7, completing a prolonged W-X-Y-X-Z correction.

This confirms the demand in the green support zone, which has been seen multiple times.

This zone has acted as a reliable launchpad for rallies, and we saw a bullish fractal forming similar to the pattern in August 2024. 

The recovery since March 11 led to a breakout from the descending channel pattern, forming an ABC corrective structure to a high of $0.0000092 on March 26.

On April 7, the final wave of Z, the demand zone’s lower boundary, was again retested, forming a double bottom.

A five-wave impulse brought the price from the demand zone to a high of $0.0000077 on April 14.

The 4-hour Relative Strength Index (RSI) divergence at the low on April 7 confirms the reversal thesis.

The broader picture shows that a new bull phase may begin if this support holds again, targeting higher Fibonacci extension levels in the long run.

PEPE Price Prediction

Zooming into the 1-hour chart, we observe a completed five-wave impulse from the April 7 low, followed by a developing ABC correction. 

Wave (a) likely bottomed around $0.0000069, with wave (b) recently completed.

If this structure unfolds, wave (c) can retest the support zone at $0.00000659 before PEPE can advance higher. 

The anticipated decline would complete a higher-degree wave 2, offering a solid launch point for a bullish reversal.

Fibonacci confluence supports this, with the 0.5 Fibonacci retracement at $0.00000659 as the next target.

The RSI is neutral, allowing room for further downside before hitting oversold territory.

A significant impulse could begin post pullback, targeting 1.272 to 1.618 Fib extensions at $0.0000096 to $0.0000106.

A sustained breakout above $0.0000079 would confirm early bullish momentum, while a decline below $0.00000659 could threaten the bullish outlook. 

Key Levels to Watch

• Major Support: $0.00000659, $0.00000532 (historical demand).
• Immediate Resistance: $0.0000070 (0.236 Fib extension).
• Breakout Confirmation: Sustained move above $0.0000079 (0.618 Fib extension).
• Invalidation Level: Break below $0.00000532.
• Fractal Watch Zone: $0.00000963–$0.00001068 (potential wave (iii) extension targets).