The PEPE price has increased since January 8, when it bounced at the previous long-term descending resistance trend line.
However, the price failed to sustain the bounce and has nearly returned to the long-term resistance trend line.
PEPE Returns to Support After Breakout
The PEPE price had fallen under a descending resistance trend line since May 2023. The decrease culminated with a low in September.
Then, PEPE began an upward movement that is still ongoing. After the fourth failed breakout attempt (red icon) in November, it successfully broke out the next month.
After peaking on December 9, PEPE started to fall. It returned to the descending resistance trend line, validating it as support on January 8 (green icon) and bouncing.
Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The daily RSI does not help determine the trend’s direction since the indicator is exactly at 50.
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PEPE Price Prediction: Has the Price Bottomed?
Similarly to the daily time frame, the six-hour one shows signs of a potential bottom. This is because of the wave count and the price action.
Technical analysts utilize the Elliott Wave theory to ascertain the trend’s direction by studying recurring long-term price patterns and investor psychology.
The most likely count suggests that PEPE has completed a five-wave upward movement (black) and is now correcting. The correction has been contained inside a descending parallel channel, which is common.
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While this is not confirmed, the correction may have ended on January 8 since the PEPE price bounced at the channel’s support trend line and the 0.618 Fib retracement support level (green).
A breakout from the descending parallel channel will confirm the bullish outlook. If both upward movements have the same length, an 80% PEPE price increase to the next resistance at $0.0000022 is foreseeable.
Despite this bullish PEPE price prediction, closing below the channel’s support trend line can trigger a 33% drop to the closest support at $0.0000008.
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