Although PEPE experienced a slight correction on February 28, it is still trading above a minor horizontal support area.
PEPE broke through long-term resistance
The weekly chart shows that the popular memecoin reached an all-time high in May 2023 and has since been declining below a descending resistance line. The price bounced from this trend line three times (red icons).
After rising in February, PEPE finally made a bullish breakout this week with a 116% intraweek gain.. The price reached a maximum of $0.00000368, after which it fell slightly. Despite the decline, the token is still trading above the final horizontal resistance area on the weekly timeframe.
Source: TradingView
Weekly Relative Strength Index (RSI) supports this breakout. The indicator is showing an upward trend and is above the neutral level of 50, which is a sign of a bullish trend.
PEPE forecast: will the historical maximum be updated
The daily timeframe also supports continued growth. The most likely scenario within Elliott Wave analysis suggests that the coin is in the third wave of a five-wave upward movement, potentially starting a fourth wave. The length of the third wave is almost 2.61 times the length of the first wave, which is a potential level for the formation of a local top.
After the rebound, the price returned to the support area of $0.00000270. If the calculation is correct, PEPE will bounce off this support area and then begin a 70% rally towards the next resistance at $0.0000050, which will become a new all-time high.
Source: TradingView
Despite the bullish outlook, a close below the $0.00000270 horizontal area will signal that the fourth wave will continue to pull back. In this case, PEPE could decline by 25% to the nearest support level of $0.0000024.
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