Pepe memcoin (PEPE) made a splash on the crypto market, but due to the recent plunge it has lost the lion’s share of points.
Today, however, PEPE rebounded.. Let’s see if we can hope for the beginning of the rally to new historical highs.
PEPE pulled back after aggressive rally
A new star rose in the crypto market in May.
PEPE, a meme token based on memes about Pepe the frog, suddenly broke into the top of the most capitalized cryptocurrencies and at the time of writing was at #60 in the ranking.
In addition, it was urgently listed on numerous centralized and decentralized trading platforms, including market heavyweight Binance.
PEPE was the undisputed leader of the “memcoin season,” soaring 2400% in 14 days. As a result, on May 5 the price updated the historical maximum at $0.0000044..
However, that was followed by a pullback, and on May 8, the token sank to a low of $0.0000018 and reached the long-term Fibo support level of 0.618 correction.
The Fibonacci levels are traditionally considered as probable springboards to stop the price after a significant advance in one direction.
Fibonacci levels are traditionally considered the most likely placeholders for stopping and reversing the price after a significant advance in any one direction.
At these levels, the market is expected to regain some of the distance traveled and only then resume the move in the original direction.
In addition, they can set limits on price movement.. The Fibo 0,618 often plays the role of the bottom, if the decrease of the price was only a correction.
As the results of technical analysis show, the Relative Strength Index (RSI) gives mixed signals.
This index is a momentum indicator, indicating an overbought/oversold market, depending on whether it is above or below the 50 mark.
In the case of PEPE, the RSI is below 50 (bearish sign) but rising (bullish sign). In addition, the indicator rebounded after it updated its historical low in the oversold area at 25 (green icon).
All this makes it impossible to judge with certainty about the directional vector of the PEPE trend.
Whether a pullback is coming.
While on the shorter 30-minute timeframe, the PEPE picture looks more positive, as indicated by the wave analysis.
According to its results, the price may have completed the formation of a corrective A-B-C structure (white).
The thesis of the completion of the correction is confirmed by the fact that the decline stopped right near the Fibo level of 0.618 of the correction.
In addition, the price made a bullish breakdown of the descending resistance line, which was constructed from the all-time high of the.
It also confirms the assumption that PEPE has completed its correction and is now ready for a new rally.
If this is confirmed, the price could rise to the 0.5-0.618 retracement levels of $0.0000030-$0.0000034.
Her further behavior in this area may determine whether we are now witnessing just a relief rally and the beginning of a new upside phase towards new historical highs.
In the meantime, a takeover of the May 8 low would cancel the bullish outlook for PEPE and could push the price back to the next closest support at $0.0000010.
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