- PEPE follows a familiar cycle, surging post-election, peaking in December or January, then declining sharply.
- Traders watch PEPE closely as it tests resistance, with a 30-35% rebound possible if it breaks key levels.
- A breakout could spark a meme coin rally, while failure may lead to further declines in line with past trends.
Many altcoins such as PEPE have experienced the same pattern of rising after relevant events, and reaching the highest point in December or January of the succeeding year and then, start a downward trend continuously. Some of these assets are trading below their prices before the elections, more so the subject of the future recovery.
However, in the current trading sessions, PEPE, in particular, has been somewhat stronger comparing to the overall market decline. If the meme coin can rally back up to its pre-election price position, Daan Crypto Trades believe it might signal the bottom for other similar coins and tokens. The altcoin’s price dynamics are being particularly intently followed by traders to determine whether there is potential for an altcoin rally.
PEPE Potential 30-35% Rebound
Currently, PEPE is facing a crucial test as it reverse at a horizontal support concurrently with a descending trendline. World of Charts has been optimistic, estimating the asset to rebound by 30-35% if it could punch through these levels. This can be the beginning of a new push in the meme coin space that has stagnated for several months now.
Source: World of Charts
However, it has risen higher than several other related coins, such as others in the meme category. Some traders believe that this stability is promising and that PEPE may be used to gauge the strength of other meme coins. This perspective is positively underlined by its performance to sustain the support levels while other assets continue to drop even more.
Breakout or Further Decline
For an extension of this uptrend, PEPE needs to break through resistance and establish a support on the other side. It may also bring back meme coins’ resurgence if the investment is successful. However, failure to do so may lead to further declines in line with the long-standing history showing that the price of altcoins settle much lower in the following days after small but sharp corrections. As of press time, PEPE is trading at $0.000007017, showing a 4.76% decline over the past day.
Source: TradingView
This has created awareness among the market participants to focus on the price behavior of PEPE. It can also regain positions over the resistance high and push back to the levels before the elections if it pulls through. Still, rejection of this level may continue to fuel bearish outlook and put pressure on the downside.
In the current state of the crypto markets, there is a lot that can depend on the future movement of PEPE in the course of the following days. As a result, trader’s sentiments are still mixed but anxious as they await the big move in one of the most-watched assets in the business.
