PEPE has been displaying notable volatility in recent weeks, consolidating after a significant breakout above the descending triangle formation on its price chart. This article utilizes a multi-timeframe analysis, combining Elliott Wave theory, RSI momentum, and Fibonacci retracement levels, to predict where PEPE’s price might head next.
The 4-hour chart reveals a well-formed descending triangle that began on December 10, 2024, with a breakdown occurring on March 11. PEPE reached a low of around $0.0000054, signaling a bearish trend with lower highs, suggesting weakening bullish momentum and growing selling pressure. After testing the base several times, the price broke out, peaking at $0.0000092 on March 29 before pulling back to an ascending trendline at $0.0000068.
This recent downturn, although still a higher low, forms a three-wave advancement rather than a bullish structure. According to the Elliott Wave count, PEPE has completed a five-wave corrective decline, signaling the end of a larger correction that followed its previous rally to $0.000028. The breakdown aligns with the final leg of an ABCDE correction, bringing PEPE back to a critical support zone that marked the beginning of its previous uptrend.
The Relative Strength Index (RSI) has dipped below 30 on the 4-hour chart, indicating oversold conditions. While the bearish structure still dominates, this could signal the potential for a countertrend rally or a wave reversal.
Looking at the 1-hour chart, PEPE shows a completed three-wave advancement, forming an ABC pattern. However, the price recently retraced back into the previous rise’s territory, invalidating the possibility of an impulsive move. The formation of an expanding channel resembles patterns seen in previous cycles, suggesting that PEPE could revisit its previous low area before potentially entering a new bullish phase.
In conclusion, while PEPE is testing support at $0.0000070, caution is advised. A further downside move is expected, but if history repeats itself, the cryptocurrency could soon experience an impulsive recovery, marking the beginning of a new bullish phase.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Whale Wallet Withdraws $3.74M in PEPE from Binance – Is a Bullish Breakout Imminent?
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
