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The charts of PEPE across the 4-hour and 1-hour timeframes illustrate an extended corrective phase following its macro impulsive peak in December. While the recent double bottom suggests a resurgence in demand, price action remains confined within descending structures. A potential bullish breakout is on the horizon, but confirmation is still pending.
PEPE Price Action
The 4-hour chart reveals that PEPE’s primary five-wave impulse concluded at $0.000028 on December 9. Following this, the price entered a prolonged downtrend, forming a complex W-X-Y-X-Z corrective structure within a descending triangle. This correction culminated at a low of $0.0000052 on March 11, marking a potential bottom for PEPE.
A brief breakout followed, mirroring a previous fractal pattern indicated by a purple box on the chart. However, this breakout soon gave way to another corrective phase, signaling that no trend reversal had occurred. Price action then returned to the demand zone, establishing a double bottom at $0.0000057 on April 7, reinforcing this level as crucial support.
The Relative Strength Index (RSI) on the 4-hour chart shows convergence, indicating that bearish momentum is waning. This, along with the double bottom formation and fractal repetition, sets the stage for a potential bullish reversal. However, the macro corrective bias remains in place until a confirmed impulsive move or breakout occurs.
PEPE Price Prediction
On the 1-hour chart, PEPE has formed a descending channel from its March 26 high of $0.0000092. Despite this, the price action from the April 7 low suggests early signs of bottoming. A subtle rally has emerged, with PEPE attempting to break above the channel’s upper boundary.
If this rally evolves into a five-wave impulsive structure from the $0.0000057 low, it could signal the completion of the larger corrective Z wave. A breakout with volume, surpassing the $0.0000065 resistance, would validate a new bullish phase. However, a failure to make a higher high could invalidate this bullish outlook, leading PEPE to revisit its March 11 low.
Key Levels to Watch
- Major Support: $0.0000052 (March 11 low), $0.0000057 (April 7 double bottom).
- Immediate Resistance: $0.0000065 (local pivot).
- Breakout Confirmation: A 5-wave structure above the descending channel.
- Invalidation Level: Below $0.0000057, reopening downside risks.
Also Read: Pepe Coin Price Eyes 130% Surge as Whales Accumulate 492B PEPE Ahead of Key Breakout
In conclusion, while PEPE‘s price action indicates potential for a bullish reversal, confirmation hinges on a clear breakout and the establishment of a five-wave pattern. Until then, the move remains corrective and susceptible to further downside.
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.
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.
