The cryptocurrency market is experiencing a sharp correction amid negative news and a decline in major assets. Let's examine the current state and prospects for PEPE.
Overview of the Cryptocurrency Market
The recent downturn in the crypto market was triggered by negative sentiment, exacerbated by political tensions, particularly between Elon Musk and Donald Trump. Bitcoin (BTC) fell to $100,430 but later recovered to $103,619, while Ethereum (ETH) dipped to $2,387 before rebounding to $2,463.
Technical Analysis of PEPE
PEPE has also faced a correction, recording a 6% daily decline, leading to weekly losses of nearly 13%. On the 4-hour chart, PEPE is forming a Bearish Cypher harmonic pattern. This pattern often signals a short-term recovery before a potential reversal. The structure began to take shape after PEPE peaked near $0.00001517, then dropped to around $0.00001097, later rebounding to approximately $0.00001295 before falling again to $0.00001036.
Prospects for PEPE's Future
PEPE has started to rise again, forming the D-leg of the pattern. If this harmonic pattern plays out fully, the final leg is expected to complete between the $0.00001416 and $0.00001513 range. These levels correspond to the 78.6% Fibonacci retracement of the XC leg and the 100% extension projection for the final push. If buying pressure continues to build, PEPE could see a 28% to nearly 38% rally from its current price levels, marking a significant short-term recovery for the memecoin.
PEPE stands at a technical crossroads. While bearish pressure lingers in the broader market, this harmonic setup may provide short-term opportunities for recovery.
