Pepe (CRYPTO: PEPE) is down 26% from its all-time high, but one trader foresees the meme coin as the winner if Bitcoin's (CRYPTO: BTC) performance picks up.
What Happened: Crypto trader Davie Satoshi outlined four potential scenarios:
- BTC drops and therefore PEPE drops.
- SBTC drops but PEPE goes up because “altseason” starts.
- BTC goes up, so PEPE also goes up.
- BTC goes up, but PEPE goes down.
He sees the fourth scenario, where BTC rises but PEPE falls, as unlikely and defying logic. Hence, he believes there are only three possible scenarios, two of which are favorable for PEPE.
In another tweet, Satoshi detailed the wave patterns he observed on the Pepe chart and predicted a wave 3 of 3 candles soon. He also suggested that a minor wave 2 retracement might occur before the green candle. He stated, "When this green candle happens, I think that’s when people will realize we’re back."
Price Action: In the past 24 hours, PEPE is down 1.1% down to $0.00001231.
Also Read: Top Trader Wonders If ‘Safer Big Caps Like Pepe, Dogecoin’ Will Outperform His Meme Coin Portfolio
Why It Matters: Satoshi points out, "In my mind, there are only 3 possible scenarios with PEPE in relation to BTC price action and 2 out of 3 are winners for PEPE. I think those are pretty good odds!" This suggests that he sees a generally positive outlook for PEPE, regardless of BTC's movements.
IntoTheBlock data noted a 1.8% increase in large transaction volume to $177.4 million, with 84% of Pepe holders in profit at current levels. This is higher compared to Dogecoin and Shiba Inu holders, although Pepe's 61% long-term holder count is lower.
What’s Next: The influence of meme coins Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: PEPE’s 10% Weekly Gain Makes It ‘The Most Fit Horse’ Among Meme Coins, Says Trader
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
