Pepe (PEPE) Mimics Dogecoin's (DOGE) 2021 Price Pattern, Set to Reach New Highs?

The biggest frog-themed memecoin on the Ethereum [ETH] network by market cap, Pepe [PEPE], seemed to be emulating Dogecoin's [DOGE] 2021 price pattern.

Pepe, the frog-themed memecoin on the Ethereum (ETH) network, has seen a surge in value, outpacing Dogecoin (DOGE) in 2023. Analyzing Pepe's price chart on the three-day timeframe reveals a pattern that resembles DOGE's price action in 2021.

Observing DOGE's price chart, we can see that it reached its highs after a Bitcoin (BTC) halving period, which also coincided with a peak in the altcoin market capitalization, represented by the OTHERS.D metric.

This pattern is evident in Pepe's recent activities. Pepe has shown similar momentum, rallying sharply in correspondence with Bitcoin's price movements and the broader altcoin market dynamics.

Specifically, DOGE hit a major peak in January 2021, shortly after Bitcoin had surged to new highs. Interestingly, the fractal on Pepe's chart suggests its potential to reach new highs from its recent peaks.

Analyzing DOGE's 2021 movement in more detail, we can see that it rallied from previous highs to significantly new levels as Bitcoin and the altcoin sector showed strong growth.

Pepe's current price action closely mirrors this phase, indicating that it may not only reach but possibly exceed its previous high marks in the coming periods, given the market conditions and investor interest.

Examining Pepe's price action on the daily chart shows an ascent as it burst through a descending wedge pattern, rallying to new highs recently.

This breakout was characterized by a spike in trading volume, signaling strong buyer interest.

However, after achieving these highs, the volume began to taper off, indicating a cooling in buying pressure.

Pepe is currently in a pullback phase, hovering above a critical support level at $0.0000167 that needs to be maintained for further uptrend.

Typically, pullbacks precede further upward movements, especially in volatile markets like memecoins.

If PEPE sustains above this support zone, it is likely to resume its rally, potentially revisiting higher levels.

The overall market sentiment around memecoins also remained bullish, suggesting that any dips might be short-lived as the cycle of volatility continues.

Furthermore, PEPE's on-chain metrics were bullish as a vast majority of holders were "in the money."

Specifically, an impressive 90.75% of all addresses were purchasing their tokens at a lower price than the press time market value, set at $0.000020.

This signifies potential profits for the majority of holders based on current prices.

In contrast, only a small fraction, 1.22%, of addresses were "out of the money," showing potential losses based on current prices, while 8.02% were "at the money," trading around the breakeven point.

This robust majority of profitable addresses could drive a sustained upward trajectory for PEPE, as most investors remain motivated to hold, potentially waiting for higher peaks before realizing profits.

Additionally, the global Long/Shorts accounts ratio suggests bullish sentiment as long positions dominated, making up 73.4% of accounts compared to 26.6% for shorts.

This strong long dominance, with a ratio of 2.76 to 1, indicates a continued upward trend, suggesting that Pepe might maintain its rally, driven by the overwhelming market optimism.