In the wake of Bitcoin’s bullish rebound, the memecoin sector has seen a notable shift in market sentiment. PEPE has emerged as a standout, achieving approximately 10% gains over the past week. This impressive performance has allowed PEPE to outshine competitors like Dogecoin and Shiba Inu, capturing the attention of traders and investors.
Adding to its momentum, a recent post by VanEck on X (formerly Twitter) significantly impacted its market performance. The whimsical frog meme, depicting a board meeting with the amphibian taking center stage, sparked substantial interest and speculation. Despite initial fluctuations, PEPE rebounded strongly, driven by heightened social media activity and community engagement.
Prominent crypto trader Darkfost recently shared his insights on the PEPE/TetherUS trading pair, highlighting significant patterns and projecting future movements. According to his detailed examination, PEPE appears to have completed its correction wave 4, suggesting an imminent upward trend.
Darkfost’s analysis underlined critical phases of expansion and pullback. The chart meticulously marks the distinct waves, with the first and third waves showing significant expansions followed by necessary pullbacks. The analysis posits that PEPE is poised to enter wave 5 following the completion of corrective wave 4.
PEPE’s Historic Pattern Indicates Future Potential
April’s pattern is a key reference point in Darkfost’s analysis. The PEPE coin exhibited a similar structure during that month, experiencing a substantial bounce post-pullback. This historical parallel adds weight to the expectation of a forthcoming bounce.
Wave 3, which reached the 1.127 level, is a significant benchmark. Darkfost anticipates wave 5 will reach approximately the same level, with 1.127 corresponding to target 3 on the chart. This target is crucial as it represents a potential peak for the upcoming wave, providing traders with a tangible goal for their trading strategies.
Currently trading around 0.00001137 USDT, PEPE is flirting with its 50-day Exponential Moving Average (EMA) at 0.00001179 USDT. Being slightly under this EMA indicates a bearish short-term outlook. However, a move above this level could indicate a bullish reversal.
If it manages to surpass its 50 EMA, it could potentially test its resistance at 0.00001294 USDT, a point where selling pressure has historically intensified. Failure to sustain this level may see a retreat to support levels of 0.00001096 USDT and 0.00001039 USDT.
Furthermore, the Relative Strength Index (RSI) currently stands at 42.65, indicating that PEPE is in a bearish phase without being oversold. The RSI suggests that market sentiment is bearish, but there’s still room before the coin hits oversold conditions, potentially prompting a reversal.
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