Can PEPE Hold the Line at This Critical Support Level?

Key Takeaways

The PEPE price has fallen by 40% since May 23.
PEPE risks breaking down from a key support level.
Can PEPE put an end to its downward movement?

PEPE rallied on May 7, doubling in two weeks and culminating with a high of $0.0000163.

However, the downward trend wiped out most of the gains, taking PEPE close to its May 7 lows.

Since PEPE is approaching its pre-breakout resistance, let’s analyze the price action and see what lies ahead.

PEPE Price Corrects

The daily time frame chart shows that PEPE has fallen inside a descending parallel channel since May 12.

While such channels usually contain corrective movements, all other signs show a bearish trend.

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Specifically, PEPE trades in the channel’s lower portion, indicating that momentum is weakening.

Moreover, PEPE failed to bounce at the 0.5 Fibonacci retracement support level, instead breaking below it.

PEPE Movement — PEPE/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView

Additionally, technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.

The RSI is below 50 and the MACD is negative, both signs of a bearish trend.

The closest support area is at $0.0000090. A breakdown below will confirm that the PEPE trend is bearish.

PEPE Completes Bounce

The wave count gives a decisively bearish PEPE price prediction, suggesting new lows are likely.

According to the count, PEPE completed a five-wave downward movement (red) after its all-time high.

Then, it finished an A-B-C correction (green) that ended between the 0.38-0.5 Fibonacci retracement resistance area.

PEPE Wave Count — PEPE/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView

If the count is accurate, PEPE’s relief rally is over, and the price will resume the downward trend that started after the all-time high.

PEPE has to move above $0.0000136 (red) to invalidate this count, meaning that the downward movement is not impulsive.

No Signs of Relief

The PEPE price has fallen by 40% since May 12 and shows no signs of strength.

On the contrary, the wave count suggests the long-term trend is bearish.

A breakdown below $0.0000090 could lead to new lows.

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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.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

[email protected]

X.com

PEPE Price Wipes Out May Gains — This Key Support Could Make or Break the Trend

PEPE Price Corrects

PEPE Completes Bounce

No Signs of Relief

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