- 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.
Will PEPE repeat this summer’s retracement?
Source: PEPE/USDT on TradingView
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
