- PEPE has surged 90% in a week but is now showing signs of trend exhaustion, with bearish RSI divergence and a rising wedge pattern signaling a potential reversal.
- Key resistance near 0.00001685 could trigger a correction unless consolidation leads to another breakout.
After skyrocketing nearly 90% since May 6, memecoin PEPE is showing signs of slowing down, raising the question: is the hype finally cooling off?
Technical indicators now suggest that PEPE’s blistering rally may be approaching its final leg. According to wave analysis, the coin is currently in wave v of (v) — typically the terminal point of a larger impulsive structure. The current upward movement appears overstretched, with classic signs of trend exhaustion beginning to emerge.
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A rising wedge formation on the 1-hour chart, often associated with market tops, supports the view that this could be the last burst before a potential retracement. Adding to that, Relative Strength Index (RSI) divergence — where the price makes higher highs but RSI prints lower highs — signals weakening bullish momentum.
On the 4-hour timeframe, PEPE broke out of a long-term descending wedge, triggering the current impulsive rally. The coin surged after completing a complex W-X-Y-X-Z corrective pattern, finding support in the accumulation zone between 0.00000532 and 0.00000600. Following this, it launched into waves (i) through (iv), with wave (v) now extending vertically.
Currently, PEPE is approaching a key Fibonacci resistance zone at 0.000016856 — the 0.5 retracement of its all-time high drop — a critical level that could spark profit-taking and halt upward momentum.
Looking ahead, if the projected wave v plays out within the rising wedge, the rally may top out around the 0.00001550–0.00001685 region. From there, a correction could target the 0.382 Fibonacci level near 0.00001418, and potentially dip toward deeper support at 0.00001250 or even 0.00001087.
Still, bulls have a lifeline. Should PEPE consolidate near the highs without breaking support, another extension wave may emerge. But for now, caution seems warranted as the parabolic climb begins to flatten.