- PEPE has recently bounced off key support levels and broken out from a long-term resistance trend, signaling the start of a potential bullish trend.
- Analysts predict that if the momentum continues, PEPE could reach new all-time highs, with some forecasts suggesting a price surge of up to 220%.
The cryptocurrency world has seen a resurgence of memecoins, with PEPE, a rising star, making waves in recent weeks. After bouncing off long-term support levels and breaking key resistance, PEPE’s price could be on the verge of reaching new all-time highs. Could it follow the rally path of Dogecoin (DOGE) to a major price surge? Let’s dive into the key technical indicators and market sentiment driving PEPE’s current rally.
A Strong Support and Resistance Bounce
PEPE’s price has recently surged, bouncing off two crucial support levels. On the weekly chart, PEPE found support at an ascending trend line and a horizontal price area around $0.0000085. This bounce created a bullish engulfing candlestick, signaling the start of a potential upward movement.
More importantly, PEPE broke free from a long-standing descending resistance trend line. This breakout marks a significant turning point, as it suggests that PEPE’s downward trend may have reversed, paving the way for an upward trajectory.
PEPE’s Path to New Highs
Currently, PEPE is testing the 0.618 Fibonacci retracement level, which marks the final resistance before the coin could break out to new highs. If PEPE clears this resistance zone, analysts predict the coin could reach levels close to its all-time high once again.
Technical indicators are aligning in favor of continued upward movement. The Relative Strength Index (RSI) has reclaimed the 50 mark, while the Moving Average Convergence Divergence (MACD) has made a bullish crossover. These indicators suggest that PEPE’s bullish trend is likely to continue in the short term.
The Dogecoin Influence
PEPE’s rally comes amid a broader memecoin surge, driven largely by the revival of Dogecoin. Unlike newer coins, DOGE has been the leader in the rally, yet PEPE’s breakout has positioned it as one to watch. Analysts are comparing PEPE’s current price action to DOGE’s past performance, noting similarities in price dominance charts.
Some traders, like PostyXBT, are building positions in PEPE, hoping it will replicate DOGE’s impressive rally. Others, like Max, are predicting that PEPE could see a breakout similar to DOGE’s past rallies.
Price Predictions and Wave Count
Looking at PEPE’s wave count, many analysts believe the coin is in the fifth and final wave of its upward movement that began in May 2023. If this is true, PEPE could see a 76% price increase, reaching a price of $0.000023. In the most optimistic scenario, where the fifth wave mirrors the first, PEPE could surge by as much as 220%, hitting a target of $0.000044.
Conclusion
PEPE’s breakout and favorable technical indicators suggest that the coin may be on the brink of a significant price surge. While the memecoin market is volatile, the similarities to DOGE’s past rally and the strong support levels indicate that a new all-time high for PEPE is entirely possible. Investors and traders will be watching closely to see if PEPE can continue its upward momentum and follow in Dogecoin’s footsteps to new price highs.