PEPE Coin Price Skyrockets, But Hopium and Speculative Predictions Setting Traders Up for a Fall?

The PEPE coin price has recently increased, reaching $0.000001137, which has led to predictable excitement among its hopium-driven crowd.

The recent surge in PEPE coin's price, reaching $0.000001137, has sparked excitement among its hopium-driven crowd. However, as the astronomical rise continues, speculative predictions are once again dominating the narrative.

The question that arises is - how long will this latest surge last before the inevitable correction?

Hopium And Speculative Predictions Setting Up Traders?

In the world of meme-tokens, bold predictions are not uncommon, and PEPE is the latest star in this hopium-filled narrative. Several influencers, like @Plazma0x and @PostyXBT, have fueled speculation with their statements about potential gains.

For instance, Plazma0x predicted that PEPE could replicate or even surpass Dogecoin's historic gains, making a bold claim of 100-300x returns. Meanwhile, PostyXBT stated that anyone not buying on a retest of key levels would "have no right to complain" later.

These tweets, especially coming from influential figures in the crypto space, aren't just projections; they tap directly into the psychology of FOMO (fear of missing out).

Filled with emotional appeal and technical jargon, such predictions encourage retail traders to join the bandwagon without fully understanding the risks involved.

Another trader, Crypto Rover, suggested that PEPE could flip Dogecoin soon, highlighting another classic example of hopium, where wild optimism tends to overshadow rational market analysis.

Such claims often lead to traders, especially those new to crypto, buying at inflated levels, hoping for massive gains that might never come to fruition.

The danger in such predictions lies in their potential to lead to significant financial losses. Many traders follow influencers and buy into the narrative at market highs, only to be met with corrections or prolonged consolidation, eroding their capital.

While the hopium-driven crowd may believe in the next "100x," the reality of speculative tokens like PEPE is that they can just as easily plunge, wiping out gains as quickly as they appear.

PEPE Coin Price In A Bearish Setup

To add insult to the hopium injury, the PEPE/USD pair has formed a bearish technical setup called the 'descending triangle.'

Analysts identify the descending triangle as a bearish continuation pattern. The descending upper trendline compresses price action into lower highs, while the flat lower trendline weakens support.

The pattern signals intensifying selling pressure, resulting in progressively weaker rallies that struggle to breach resistance.

In this setup, traders estimate the potential downside by measuring the maximum height of the triangle. Pepe coin's price recently broke out of this descending triangle, only for bulls to push it back within the pattern.

However, if the Pepe Coin's price confirms the bearish setup, the PEPE/USD pair could plummet by over 73%, reaching a target near $0.0000029.