PEPE rebounded, but trend remains uncertain

After the breakout, PEPE returns to provide support

The price of the popular internet phenomenon token PEPE has been declining along a descending resistance line since May 2023 and hit its lowest point in September.

Subsequently, the coin initiated an upward movement, which has been ongoing. After the fourth unsuccessful attempt at a bullish breakout (red icon) in November, the persistent bulls finally succeeded the following month.

After reaching its peak on December 9, PEPE began to experience a decline. It returned to the descending resistance line, established it as a support (green icon) on January 8, and rebounded.

Source: TradingView

The daily RSI momentum indicator is insufficient in determining the trend’s direction since the index currently sits at the neutral 50 mark.

PEPE forecast: Has the price reached its bottom?

Similar to the daily timeframe, the 6-hour chart indicates potential signs of a bottom. This observation is supported by the wave chart and price dynamics.

Based on the Elliott Wave analysis, the most probable scenario suggests that PEPE has completed a five-wave bullish structure (black) and is currently undergoing a correction phase. This correction is taking place inside a descending parallel channel, which is quite common.

Although confirmation is still pending, the correction may have concluded on January 8 as the PEPE price bounced off the channel support line and the 0.618 Fibonacci retracement level (green).

A bullish breakout from the descending parallel channel would confirm the optimistic scenario. If both upward price movements have equal lengths, it can be anticipated that PEPE could rise by 80% until it encounters the next resistance at $0.0000022.

Source: TradingView

Conversely, a close below the channel support line might trigger a 33% drop to the nearest support level at $0.0000008.

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