Pepe coin is the most talked about asset in the crypto market right now. The less than one-month-old meme token has nothing at all to do with Bitcoin, yet shockingly is displaying nearly exact price patterns.
Don’t miss this incredible and unusual chart comparison between BTCUSD and PEPEUSDC.
A Quick Recap Of Pepe Coin And Its Runaway Crypto Success
Pepe coin is one of the biggest new meme coins, prompting a massive wave of more meme tokens of all kinds. If you couldn’t tell by the name, much like Dogecoin is associated with the Doge meme, this one features the Matt Furie-created Pepe the Frog.
Anyone who invested in Pepe coin over the last couple of weeks “feels good, man.” That is because it has risen in value by over 2,500% in 14 days — numbers that are high even by crypto standards. Most of the supply of holders at this point is in substantial profit. But if the Bitcoin chart is any indication of what’s to come, some serious profit taking could be ahead.
In the comparison below, we have put the 4-hour PEPEUSDC chart up against the weekly BTCUSD chart. The left chart features two weeks of price action, while the chart on the right shows four full years. Yet they are extremely similar.
Bitcoin versus the frog king of the memes | PEPEUSDC on TradingView.com
The Unusual Bitcoin Comparison Explained
According to study of Elliott Wave Principle, markets are fractal and form self-similar, repeating patterns across various degrees of timeframes. Simply put, the same price action and behavior can appear on an hourly or 4H chart as it does on a much higher timeframe.
The study focuses on mass crowd behavior and human psychology, particularly how it can create clearly definable turning points in financial markets. The two charts looking and behaving so similarly could be due to the same type of speculative behavior.
Importantly, if the comparison is accurate for the reasons discussed, it could indicate that Pepe coin is due for some profit-taking and a correction soon enough. Of course, the meme coin could be nowhere near done and anyone who sells now could be a very, very sad frog.
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— NewsBTC (@newsbtc) May 2, 2023