The meme coin phenomenon continues to captivate crypto markets, and few tokens have drawn as much attention as PEPE. Once soaring to unprecedented highs in late 2024, PEPE has since undergone a brutal correction—shedding approximately 75% of its peak value. Despite the steep downturn, emerging technical signals suggest the worst may be behind it, with potential for a powerful 55% rebound on the horizon.
This article explores the current state of PEPE’s price action, analyzes key support and resistance levels, evaluates short- and long-term outlooks, and assesses whether a meaningful recovery is imminent.
PEPE’s Dramatic Fall From All-Time High
PEPE reached its all-time high of $0.0000283 in December 2024, riding the wave of bullish sentiment that swept through the meme coin sector. However, momentum reversed sharply in early 2025 after the asset formed a lower high in January, triggering a cascade of selling pressure.
Since then, PEPE has plunged by over 74%, bottoming out near $0.0000052**—a level that briefly held as critical support. More significantly, the drop led to a breakdown below both a long-standing **ascending trendline support** and the psychological **$0.0000088 horizontal support zone, both of which had been intact for over a year.
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Such structural breakdowns are typically bearish indicators, often marking the end of an uptrend and the beginning of a prolonged correction or bear market. In PEPE’s case, this aligns with Elliott Wave theory, which suggests that the token completed a full five-wave bullish impulse from September 2023 through December 2024 (marked in green on charts).
With that cycle concluded, the market likely entered a corrective phase—one defined so far by aggressive downside momentum.
Technical indicators echo this bearish sentiment on the weekly timeframe:
- The Relative Strength Index (RSI) remains below 50, indicating sustained selling pressure.
- The MACD has generated a bearish crossover (highlighted by a black circle on many charts) and continues to trade in negative territory.
While these readings point to ongoing weakness, they also set the stage for a potential reversal—especially if oversold conditions trigger a relief rally.
Signs of a Potential Reversal Are Emerging
Despite the bleak weekly outlook, the daily chart paints a more optimistic picture. There are growing signs that PEPE may be preparing for a significant bounce.
One of the most compelling clues is the recent breakout from a descending wedge pattern—a classic bullish reversal formation often seen at the end of sustained downtrends. Breakouts from such patterns typically precede sharp upward moves, especially when confirmed by volume and momentum indicators.
Additionally, wave analysis on the daily timeframe suggests PEPE may have completed a full five-wave downward correction (shown in red) from its all-time high. If accurate, this would imply that the downtrend has exhausted itself and that a counter-trend rally could now unfold.
This potential upward move would likely serve as a corrective bounce, aiming to retest previous support levels now acting as resistance—particularly around $0.0000116, a key horizontal barrier.
Supporting this scenario are bullish divergences appearing on both the daily RSI and MACD (marked in green). These occur when price makes lower lows but momentum indicators fail to follow suit—often a precursor to trend reversals.
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Should the breakout hold, traders may see PEPE climb toward $0.0000116, representing a potential gain of over 55% from current levels.
However, failure to sustain the wedge breakout could result in another test of the $0.0000052 support zone. While this wouldn’t invalidate the bullish case entirely, it would likely extend consolidation before any meaningful recovery takes hold.
Short-Term Bounce vs Long-Term Bearish Outlook
It's crucial to distinguish between short-term technical rebounds and long-term trend direction.
On the long-term (weekly) scale, PEPE remains firmly in bearish territory:
- Key structural supports have broken.
- Momentum indicators are still declining.
- The broader Elliott Wave structure suggests a new bear market phase may have begun.
In contrast, the short-term (daily) view reveals conditions ripe for a relief rally:
- Oversold readings.
- Bullish chart patterns.
- Positive momentum divergences.
Therefore, while any rally should be viewed as part of a corrective phase—not necessarily the start of a new bull run—it could still offer substantial trading opportunities for those entering with proper risk management.
Frequently Asked Questions (FAQ)
Q: Has PEPE hit its bottom yet?
A: While PEPE has reached multi-month lows near $0.0000052, confirmation of a bottom requires sustained price action above key resistance levels, particularly $0.0000116. Until then, caution is advised.
Q: What is the next major resistance level for PEPE?
A: The most immediate target is **$0.0000116**, followed by $0.000018 and $0.0000283 (all-time high). Breaking above $0.0000116 would confirm bullish momentum.
Q: Is PEPE still a viable investment after such a large drop?
A: PEPE remains highly speculative. The 75% decline reflects significant risk, but short-term technical signals suggest a rebound is possible. Investors should conduct thorough research and consider position sizing carefully.
Q: How does Elliott Wave theory apply to PEPE’s current price movement?
A: According to wave analysis, PEPE completed a five-wave advance (bullish), followed by a five-wave decline (bearish), suggesting the downtrend may be ending and a corrective rally could begin.
Q: Can PEPE recover its all-time high in 2025?
A: Given current market conditions and lack of fundamental drivers beyond speculation, reclaiming the all-time high appears unlikely in the near term. A 55% rebound would already represent strong progress.
Final Outlook: Cautious Optimism Amid Bearish Structure
While PEPE’s long-term trend remains bearish following the breakdown of major support levels, short-term technicals suggest a relief rally is increasingly likely. The combination of a descending wedge breakout, completed downward wave structure, and bullish momentum divergences creates a compelling case for a bounce.
A move toward $0.0000116—a 55% increase from recent lows—appears technically justified if buying pressure continues. However, traders should remain cautious: this rally may only represent a corrective phase within a larger bear market.
For those interested in participating, strict risk controls and close monitoring of volume and momentum signals will be essential.
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Disclaimer: The information provided in this article is for informational purposes only. It does not constitute financial advice. Cryptocurrency investments are highly volatile and carry substantial risk. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.