Pepe [PEPE], the leading frog-themed memecoin operating on the Ethereum [ETH] network based on market cap, appears to be mirroring the price trends seen in Dogecoin [DOGE] during 2021.
By examining the market activities over a three-day period, it is observed that DOGE reached its peak following Bitcoin’s [BTC] halving period, aligning with a surge in the altcoin market cap, along with OTHERS.D following a similar pattern.
This trend seems to be replicating in PEPE’s recent performance as well. Pepe has demonstrated a comparable momentum, rallying significantly in line with the movements in Bitcoin’s price and the broader dynamics of the altcoin market.
In January 2021, DOGE experienced a significant peak, coinciding with Bitcoin’s surge to new record highs. Similarly, PEPE’s fractal indicates the potential for reaching and surpassing previous peak levels.
Looking at DOGE’s trajectory in 2021, it surged from its previous highs to establish new significant levels of value while Bitcoin and the altcoin segment were flourishing.
PEPE’s current price movements closely echo this phase, suggesting the possibility of not only achieving but potentially surpassing previous peak levels in the upcoming periods, depending on market conditions and investor sentiment.
Predicting Pepe’s Trajectory After Attaining a Fresh All-Time High (ATH)
Analyzed on the daily chart, PEPE’s price action has displayed an upward trend as it broke through a descending wedge pattern to achieve recent highs.
This breakout was accompanied by a surge in trading volume, indicating a strong interest from buyers.
Subsequently, after reaching these highs, the trading volume started to decline, signaling a reduction in buying pressure.
PEPE is currently in a retracement phase, hovering above a crucial support level at $0.0000167, which must be maintained for potential further upward movement.
In volatile markets like memecoins, retracements often precede extended upward trends. If PEPE manages to stay above this support level, it is likely to resume its upward momentum, possibly revisiting higher price levels.
The overall market sentiment toward memecoins remains optimistic, suggesting that any downturns could be temporary as the cycle of volatility unfolds.
Global Profitability and Distribution of Accounts
Furthermore, PEPE has garnered bullish sentiment among holders, with an impressive 90.75% of all addresses currently in a profitable position, indicating that the majority acquired their tokens at a lower price than the current market value of $0.000020.
A mere 1.22% of addresses find themselves “out of the money,” potentially facing losses at present prices, while 8.02% are classified as “at the money,” trading near the breakeven point.
This substantial proportion of profitable addresses could propel a sustained upward trajectory for PEPE, as most investors are inclined to hold, anticipating higher peaks before considering profit-taking.
This strong foundation of holders lays the groundwork for potential future price appreciation.
Once again, the global ratio of Long/Short accounts leans towards bullish sentiment, with long positions dominating at 73.4% of accounts compared to 26.6% for shorts.
The prevalent dominance of long positions, with a ratio of 2.76 to 1, strongly suggests a continued upward trend, indicating that Pepe is likely to uphold its rally, buoyed by the prevailing market positivity.