PEPE has recently showcased a slightly bearish trend on the 3-day chart. Will this memecoin dodge the dramatic 60% retracement it faced last summer? Current market sentiment appears to be leaning more bullish, suggesting a potential avenue for PEPE to rise rather than fall.
The latest insights indicate that PEPE bulls are successfully holding the $0.0001711 mark. Observations from the On-Balance Volume (OBV) indicate that selling pressure is relatively mild, especially considering the swift declines witnessed over the past three weeks. Remarkably, the OBV has remained above the highs seen in May, signaling a healthier recovery outlook.
Lookonchain recently reported a significant development where a whale, who previously sold during the market downturn, has resumed accumulating this memecoin. This behavior reflects a rejuvenated belief in the ability of bulls to bring PEPE back to healthier levels.
The question looms—will PEPE repeat its summer retracement? The recent price action on the 3-day chart shows a bearish inclination, primarily following a close at $0.00001705 on December 17, settling below a crucial former higher low at $0.00001729, which was established on November 26.
Nonetheless, there’s potential for a bounce! The price zone between $0.00001974 and $0.00002259 holds promise, indicating a fair value gap that could soon be filled. Investors might see PEPE rallying to anywhere from $0.00002 to $0.0000225 in the coming days.
Reflecting on the previous uptick in April, PEPE underwent a retracement to the 78.6% level, about three months after reaching a new high in late May. If history repeats—though no guarantees—this could mean a decline to the $0.00001067 level in the ensuing weeks before a potential recovery kicks in.
Yet, it’s crucial to recognize that current market conditions differ significantly from previous months. From March through October, Bitcoin experienced a downward trajectory, remaining within a consolidative descending pattern.
Looking ahead, there seems to be a stronger case for PEPE to not plummet to the 78.6% retracement following the latest developments in Bitcoin’s performance, which has recently shown resilience, rallying around the $100k mark with a peak at $108k while moving in sync with a buoyant stock market in December. As a result, it is likely that PEPE may find itself more vibrant in upcoming weeks rather than repeating last summer’s harsh lows.
In the near term, anticipate movements toward $0.0000144, followed by a phase of consolidation and lower highs, eventually paving the way for explosive growth, potentially driving towards $0.000042 or higher.
Disclaimer: This information does not serve as financial, investment, or trading advice but reflects the author’s opinion.