The cryptocurrency market is experiencing a corrective phase after the November rally, including a decline in assets like Ethereum's meme coin, PEPE.
Current State of the Crypto Market
The cryptocurrency market remains in a corrective phase following the November rally, with downturn extending into February. The decline has been fueled by recent events such as the escalation of the trade war sparked by U.S. President Donald Trump's tariffs and the Bybit hack, adding further volatility. One of the hardest-hit assets is Ethereum's meme coin, PEPE, which has seen a 55% correction over the past two months. Currently, PEPE is trading around $0.0000083, having hit a five-month low.
Historical Patterns and PEPE's Potential
According to crypto analyst Jameson, PEPE's current price action on the 12-hour chart is eerily similar to its performance last year. In December 2023, PEPE underwent a steep correction, followed by a failed breakout in January. The coin then dipped further in early February before skyrocketing nearly 10x from $0.0000011 to $0.00001081 by March 2024.
Now, the chart appears to be repeating the same pattern—a major correction, followed by a failed breakout attempt and a new low. If history is indeed rhyming, this setup suggests that PEPE could be gearing up for another massive rally, especially if Ethereum stages a recovery.
Jameson commented, 'It’s taking slightly longer to play out than I originally anticipated, but the idea remains unchanged.'
Final Thoughts
While PEPE is currently in bearish territory, historical price action suggests that a strong recovery could be on the horizon if market conditions improve. With Ethereum playing a critical role in memecoin sentiment, a resurgence in Ethereum’s price could act as the catalyst for PEPE's next potential breakout.
Still, given the ongoing market uncertainty, caution is advised. The volatile nature of memecoins means that price swings can be extreme in both directions. Traders should keep an eye on support and resistance levels, as well as broader crypto market trends, before making any moves.
The crypto market remains uncertain, making it difficult to predict PEPE's future. However, historical data suggests a strong recovery is possible if conditions improve.
