3 min read

PEPE Forms Descending Triangle Amid Ongoing Decline, Breakout Expected

Published

By Nikola Lazic

Edited by Ryan James

PEPE price continues to decline inside descending triangle as correction develops. However a breakout could soon be expected.

Key Takeaways

PEPE is in a corrective phase after completing wave 3.
The $0.0000160-$0.0000155 zone is crucial for bullish continuation.
A breakout above $0.0000201 could signal the start of wave 5.

The PEPE price chart highlights a strong bullish rally that peaked at $0.0000256, marking the end of wave 3 before entering a wave 4 corrective phase.

Currently, the price is consolidating near the 0.382 Fibonacci retracement at $0.0000183, with a potential downside toward $0.0000160 if support fails.

PEPE Price Analysis

The daily PEPE chart shows a bullish breakout from its prolonged corrective phase, marked by a WXY pattern by Sept. 5.

The price surged from its October lows, establishing a strong uptrend that peaked at $0.0000256, completing the third wave of its impulsive structure.

After reaching overbought Relative Strength Index (RSI) levels, the rally entered a corrective phase, forming a wave 4 pullback.

PEPE price analysis — PEPEUSD still inside descending triangle | Credit: Nikola Lazic/TradingView

The price is currently consolidating, testing the 0.382 Fibonacci retracement at $0.0000183 as support. Further downside could target $0.0000160 (0.5 Fib).

The corrective structure suggests a potential continuation toward a final fifth wave after consolidation, with new highs likely if bullish momentum resumes.

Key Observations

Elliott Wave Formation: PEPE is in wave 4 consolidation, following a strong wave 3 rally.
Critical Support Zone: The $0.0000160-$0.0000138 range aligns with key Fibonacci levels.
RSI Cooling Off: RSI has exited the overbought zone, signaling a potential reset before continuation.

The ability to sustain above $0.0000160 is critical for maintaining a bullish structure. A breakout above the $0.0000210 resistance could validate the beginning of wave 5, targeting higher extensions near $0.0000320.

Conversely, a breakdown below $0.0000138 may indicate a deeper correction before recovery.

PEPE Price Prediction

Zooming into the hourly chart, we see a corrective phase formed a descending triangle after completing wave 3 at $0.0000256.

This is why we anticipate an upward breakout once wave 4 ends, and with its latest support interaction, there are a couple of possibilities ahead.

This correction aligns with key Fibonacci levels, with the 0.618 Fib extension at $0.0000181 acting as immediate support. A breakdown from this level may signal further downside toward $0.0000160 (0.5 Fib) or $0.0000155 (1.0 Fib), completing wave 4.

PEPE price prediction — PEPEUSD breakout above $0.000021 will confirm a correction ended | Credit: Nikola Lazic/TradingView

Conversely, a breakout above the descending resistance near $0.0000201 could indicate the beginning of wave 5.

We now see that the price found support and is attempting to recover, but will the momentum be strong enough to cause a breakout above descending resistance? If a rejection occurs, the currently labeled ABC correction could be extended by two more sub-waves, amounting to an ABCDE.

In that case, one lower low to the 0.5 Fib retracement or 1 Fib extension at $0.000015 will look more likely.

Key Levels to Watch

Support Levels:

$0.0000181 (0.618 Fibonacci extension): Immediate support is critical for maintaining a bullish structure.
$0.0000160 (0.5 Fibonacci extension): Secondary support aligning with previous consolidation zones.
$0.0000155 (1.0 Fibonacci extension): Final wave 4 targets if the correction deepens.

Resistance Levels:

$0.0000201: Descending triangle resistance, key for confirming wave 5 initiation.
$0.0000223 (0.236 Fibonacci extension): First horizontal resistance after a breakout occurs.
$0.0000256: Prior high and potential wave 5 extension target.

The broader trend remains bullish, provided the price sustains above $0.0000160. A decisive breakout above $0.0000201 would confirm wave 5 development, with the potential to surpass prior highs.

Failure to hold $0.0000155 could shift momentum bearish, leading to deeper retracement levels.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

Was this Article helpful? Yes No

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

[email protected] LinkedIn