PEPE price makes an increase by now finds itself at prior high. Will it break above it?
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Key Takeaways
PEPE maintains support above $0.00002010, signaling the start of a new uptrend.
Bullish momentum targets $0.00003400 as the next key level.
RSI cooling suggests the rally has room to extend further.
PEPE has shown a strong recovery after a prolonged corrective phase, marking a significant turnaround in its price action.
Following a sharp decline earlier this year, the token established a solid base and resumed its uptrend, recently breaking through key resistance levels.
This resurgence has been characterized by impulsive waves, with the price reaching notable highs after completing its previous correction.
As the token stabilizes and builds momentum, it appears poised for further upside, supported by strong technical indicators and improving market sentiment.
The daily chart for PEPE showcases a strong recovery following a prolonged WXY corrective structure, culminating in an impulsive rally.
This uptrend reached a local high near $0.00002559 on Nov. 14 and entered the wave 4 consolidation phase.
PEPEUSD larger uptrend could be developing | Credit: Nikola Lazic/TradingView
A descending triangle formed, forming an ABC correction that led to a low of $0.0000173 on Nov. 26. Since then, we have seen a new uptrend develop, resulting in a breakout above and a high of $0.000023 on Dec 1.
After a minor pullback today, the price is revisiting this high but showing signs of struggle. The Relative Strength Index (RSI) remains elevated but has cooled from overbought levels, indicating a potential for renewed upside.
Key Observations
Wave 4 Likely Ended: PEPE is in a corrective ABC pattern, maintaining support above $0.00002010 (0.236 Fibonacci).
Wave 5 Potential: The bullish structure indicates a probable move toward $0.00003400 in wave 5.
RSI Moderation: RSI cooling suggests momentum may recharge for the next impulsive phase.
PEPE Price Prediction
The hourly chart of PEPE indicates the ongoing progression of wave 5 within a broader Elliott Wave structure.
Following the completion of wave 4 as a descending triangle, the price is attempting to push higher, with wave (iii) developing and targeting Fibonacci extensions.
PEPEUSD breakout above prior high expected| Credit: Nikola Lazic/TradingView
The immediate move above $0.00002250 confirms bullish momentum, suggesting further upside in wave (iii) and wave (v). However, another possibility could be that the recent rise since Dec. 3 is part of a larger corrective structure.
A sustained hold above $0.00002232 will confirm the continuation of wave (iii), with an immediate upside potential of $0.00002541.
A breakout above $0.00002708 could lead to a sharper rally, targeting $0.00003325, while a drop below $0.00002069 would signal potential consolidation or weakness.
Key Levels to Watch
Support Levels:
$0.00002232 (0.5 Fib): Immediate support to sustain the bullish momentum.
$0.00002069 (0.236 Fib): Stronger support level if a deeper retracement occurs.
$0.00001728 (Wave 4 Low): Critical level to maintain the broader bullish structure.
Resistance Levels:
$0.00002541 (1 Fib): Immediate resistance and potential wave (iii) target.
$0.00002708 (1.272 Fib): Key resistance as wave (v) approaches completion.
$0.00003325 (2.272 Fib): Extended target for wave (v) and a likely local top.
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.
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.
