Key Takeaways
PEPE was one of the best-performing meme coins in 2024. However, the tide shifted in 2025. PEPE accelerated its decline after creating a lower high in January, crashing through several key support levels and losing 75% of its value.
Despite this decline, signs of recovery are emerging. The correction has slowed since February, creating optimism that PEPE could reach a local low and bounce.
How likely is this prediction, and if PEPE breaks out, how long will the rally last? Let’s find out.
PEPE Breaks Below Support
The weekly time frame chart shows that PEPE has fallen by 75% since its all-time high of $0.0000283 in December 2024.
The decline culminated with a low of $0.0000052, causing a breakdown from a long-term ascending support trend line and the $0.0000088 horizontal support area.
Since these levels existed for over a year, the breakdown suggests the upward movement is over, and the PEPE price started a long-term bearish trend.
The wave count aligns with this, showing a completed five-wave upward movement since September 2023 (green).
Technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The former is below 50, while the latter made a bearish cross (black circle) and is negative.
So, the weekly time frame gives a bearish PEPE prediction. While the PEPE price could bounce, it would likely validate its previous diagonal and horizontal support levels, confirming them as resistance.
Can PEPE Bounce?
While the weekly chart is bearish, the daily one suggests that PEPE is overdue for a considerable bounce. There are several reasons for this:
Firstly, the PEPE price breaks out from a descending wedge, which is considered a bullish pattern. Secondly, PEPE has completed the fifth and final wave in a downward movement (red) since the all-time high.
If the count is accurate, PEPE will start a corrective upward movement, validating the previous long-term support levels as resistance.
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Finally, the daily RSI and MACD have generated bullish divergences (green), supporting the breakout from the wedge and the start of a relief rally.
If one happens, the horizontal resistance at $0.0000116 will likely be a target for a local top.
Failing to break out from the wedge could cause another retest of the support trend line at $0.0000052.
This would not invalidate the breakout possibility but would lead to more consolidation before PEPE finally bounces.
PEPE Price Rallies
The long-term readings give a decisively bearish PEPE prediction, confirming that the bullish trend is over.
However, the short-term outlook suggests a bounce is in store, confirmed by a breakout from the short-term descending wedge.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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