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Home»Altcoins»Why The Parabolic Pepe Coin Could Flatten By 80%
Altcoins

Why The Parabolic Pepe Coin Could Flatten By 80%

2023-05-01No Comments3 Mins Read
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Pepe coin, the meme cryptocurrency based on the popular internet meme, has become the newest sensation across crypto.

Although it has made early buyers extremely happy – and extremely wealthy – it could soon leave many holders feeling flattened due to a possible 80% correction. Let’s take a closer look.

Feels Good, Man… For Now

What goes up, must come down. The bigger they are, the harder they fall. Regardless of the phrase you choose, there is a lesson related to Pepe possibly on the way.

Few meme coins these days are a bigger deal than Pepe, rising from nothing to into the top 100 cryptocurrencies by market cap in a little over two weeks since its launch.

It’s vastly out-performed meme coin brethren Dogecoin and Shiba Inu, and the dozens of new coins that Pepe’s runaway success has spawned. But after an especially big rally of well over 400% in the last 48 hours, holders who bought he top could ultimately find out what it means to be a sad frog meme.

parabolic pepe coin curve

The parabolic Pepe coin curve | PEPEUSDC on TradingView.com

Predicting A Massive Pepe Coin Crash

PEPEUSDC on Uniswap is one of the first charts to launch on TradingView with the largest amount of price data. Since the chart’s inception, it has brought investors 3,000% ROI. Earlier adopters turned $250 into a cool mil.

Those who bought the top might be at risk of turning a million into lot less, considering the risk of a more than 80% correction. The risk is due to the parabolic curve pictured above breaking down violently.

See also  Ripple Live News: Advocate John Deaton Criticizes SEC and Gary Gensler, XRP Price Gears Up

A rule of thumb in technical analysis is to expect at minimum an 80% retracement of a parabolic rally. Crypto holders would do well to remember 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 top to bottom before it was over. Brandt nailed the target over a year in advance. If Pepe coin has topped out after a 3,000% gain, a roughly 80% correction might be due.

But much like Bitcoin then, after the correction, Pepe coin being such a new and hot coin should eventually bring substantial returns again. However, while the greater crypto market corrects, profit taking could aggressively spill into Pepe holders, who have a lot more room to fall compared to the rest of the market. As a result, things could get ugly quickly.

Today, we are talking about the MEASURE RULE, and how to use it in technical analysis to find profit targets and determine risk:reward in crypto trading using #PEPE as an example

Here’s how not to be a sad frog 🐸 $PEPE pic.twitter.com/JqqDhvnJez

— CoinChartist (@coinchartist_io) April 30, 2023

Follow @TonyTheBullBTC & @coinchartist_io on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Coin Flatten Parabolic PEPE
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bitcoin
Bitcoin (BTC) $ 117,223.41
ethereum
Ethereum (ETH) $ 2,922.39
xrp
XRP (XRP) $ 2.69
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 682.47
solana
Solana (SOL) $ 159.72
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.194583
tron
TRON (TRX) $ 0.300408
staked-ether
Lido Staked Ether (STETH) $ 2,919.74