PEPE Ready For a Parabolic Rise? A Popular Analyst Thinks So
As the breakout momentum continues the price keeps advancing with new high ahead. | Credit: Shutterstock
Key Takeaways
- The analysis points out a potential 36% rise
- Breakout momentum still present
- Price target is valid and the price might proceed further up above it
A popular crypto analysis Kaleo with a following of 594K followers on Twitter asserted his bullish stance on the PEPE coin. Namely, he suggests that this cryptocurrency is poised for another parabolic runup, similar to what we have seen in May.
As he didn’t provide a detailed analysis and some technical context of why the price might go straight up, in this analysis, we are going to examine this possibility and evaluate the probability of PEPE coin hitting 0.0000019.
PEPE Price Analysis
From its all-time high of $0.0000044 on May 5, the price fell by 81.16%, measured to its lowest point of $0.00000 on June 15. A recovery to the 0.5 Fibonacci retracement level was made but the price started decreasing again slowly, until reaching a higher low of $0.00000106 on August 7.
At first, the primary expectation was that the price will continue to move down and retest the horizontal zone of the prior low made in June. However, it started increasing and made a breakout above the descending trendline, indicating potentially a new starting uptrend.
SMA 100 and SMA 20 formed a golden cross on August 11, also indicating an uptrend. The last time we have seen a golden cross of these two moving averages was on July 8 after which a minor high was made, but the time before that was on June 21, resulting in an increase of 88%.
The RSI is starting to go inside the overbought territory which is a sign of wary, and as we see from the 4-hour chart, usually as it did, that indicated a top or at least a local one. But in comparison to other times, it went in the overbought now we are seeing a slower move, compared to the spikes seen prior.
PEPE Price Prediction
So what is the likelihood of the price hitting $0.0000019? This target was the next horizontal resistance level ahead, as it was the prior high territory. But if the price maintains its upward momentum, we would primarily look at higher targets.
According to our Elliott Wave count, there are two possibilities. In either case, the run-up till May was the first five-wave impulse of the higher degree.
In the bullish case, the first major correction occurred after to June 15, ending in the 2 wave of the higher degree. That leads us to the possibility that we have seen the first two sub-wave of wave 3 that is going to result in a new ATH of the PEPE coin.
On the other hand, as displayed in the chart above, the correction is still lasting, which is in our mind more likely, than that the price is headed to a new all-time high. In this long-term bearish scenario, we could see some near-term bullish price action.
The first major downfall from ATH to June 15 was only the first corrective wave ABC.
Since the rise seen from June 15 was a five-wave impulse and cannot be labeled corrective as such, it needs to develop waves B and C.
According to this count, we are now seeing the development of wave C. Projecting the length with the Fibonacci extension we come up with a target of $0.00000024 at the same length as wave A.
This will mark the completion of wave X from the WXY correction, meaning that another descending ABC would be expected after.
Conclusion
The price of PEPE showed some bullish price action in the previous week and is now continuing its upward trajectory. Although it is still not clear in which context we are in on the macro level, the near-term perspective implies that we should be expecting the mentioned target and even beyond to $0.0000024.
In the case that the price continues even further increasing, we can start to validate the bullish scenario in which a new all-time high could be a more likely possibility.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
