Pepe coin, the meme cryptocurrency based mostly on the favored web meme, has change into the most recent sensation throughout crypto.
Though it has made early patrons extraordinarily joyful – and intensely rich – it might quickly go away many holders feeling flattened on account of a doable 80% correction. Let’s take a better look.
Feels Good, Man… For Now
What goes up, should come down. The larger they’re, the more durable they fall. Whatever the phrase you select, there’s a lesson associated to Pepe presumably on the best way.
Few meme cash as of late are an even bigger deal than Pepe, rising from nothing to into the top 100 cryptocurrencies by market cap in somewhat over two weeks since its launch.
It’s vastly out-performed meme coin brethren Dogecoin and Shiba Inu, and the handfuls of latest cash that Pepe’s runaway success has spawned. However after an particularly massive rally of effectively over 400% within the final 48 hours, holders who purchased he prime might in the end discover out what it means to be a tragic frog meme.
The parabolic Pepe coin curve | PEPEUSDC on TradingView.com
Predicting A Huge Pepe Coin Crash
PEPEUSDC on Uniswap is without doubt one of the first charts to launch on TradingView with the most important quantity of worth information. For the reason that chart’s inception, it has introduced buyers 3,000% ROI. Earlier adopters turned $250 right into a cool mil.
Those that purchased the highest is likely to be vulnerable to turning 1,000,000 into lot much less, contemplating the danger of a greater than 80% correction. The chance is because of the parabolic curve pictured above breaking down violently.
A rule of thumb in technical evaluation is to count on at minimal an 80% retracement of a parabolic rally. Crypto holders would do effectively to do not forget that Peter Brandt famously called for an 80% collapse in Bitcoin after the 2017 peak.
After that parabolic rally ended, BTCUSD dropped at full 84% from prime to backside earlier than it was over. Brandt nailed the goal over a yr prematurely. If Pepe coin has topped out after a 3,000% achieve, a roughly 80% correction is likely to be due.
However very similar to Bitcoin then, after the correction, Pepe coin being such a brand new and sizzling coin ought to finally deliver substantial returns once more. Nevertheless, whereas the higher crypto market corrects, revenue taking might aggressively spill into Pepe holders, who’ve much more room to fall in comparison with the remainder of the market. Consequently, issues might get ugly rapidly.
Right this moment, we’re speaking in regards to the MEASURE RULE, and tips on how to use it in technical evaluation to seek out revenue targets and decide threat:reward in crypto buying and selling utilizing #PEPE for example
Right here’s how to not be a tragic frog 🐸 $PEPE pic.twitter.com/JqqDhvnJez
— CoinChartist (@coinchartist_io) April 30, 2023
