Posted: December 28, 2024

• PEPE had a bearish bias on the 3-day chart
• Retracement in mid-2024 might not be repeated since market sentiment seemed much more bullish

PEPE bulls have managed to defend the $0.0001711-level. The OBV revealed that selling pressure was not overwhelming, despite the swift losses of the past three weeks. In fact, it has stayed above the highs from May, revealing that a recovery is more likely than more losses.

According to Lookonchain‘s latest update on X (formerly Twitter), a whale who sold their holdings during the market drop has been accumulating the memecoin once again. This reflected faith in the bulls’ ability to recover.

On the 3-day chart, PEPE’s price action had a bearish tinge. The structure favored the sellers because of the trading session close at $0.00001705 on 17 December, below the former higher low at $0.00001729 set on 26 November.

To the north, the $0.00001974-$0.00002259 zone represented a fair value gap that could be filled. Hence, a bounce to $0.00002-$0.0000225 can be expected in the coming days.

The PEPE memecoin rally in April saw a retracement to the 78.6% level 3 months after forming a new high in late May. If it takes a similar course this time, it could fall to the $0.00001067-level in the coming weeks before it recovers.

However, the similarities need not play out exactly. Market conditions are completely different right now. From March to October, Bitcoin [BTC] was on a steady downtrend, consolidating within a descending channel.

Read Pepe’s [PEPE] Price Prediction 2025-26

In recent weeks, it has tested the $100k-level multiple times, hit a new high at $108k, before retracing alongside the stock market in the third week of December. Therefore, the coming weeks are more likely to be more bullish for PEPE. We might not see a deeper retracement to the 78.6% level at $0.00001067.

We can expect a move towards $0.0000144 and a few weeks of lower highs and consolidation, before the meme bursts higher, targeting $0.000042 and beyond.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion