Pepe

Uniswap

Pepe token price has risen for two consecutive days in a high-volume environment as traders bought the dip. 
<h2 class="wp-block-heading" id="pepe-price-is-recovering">Pepe price is recovering</h2> 
Pepe (<a href="https://crypto.news/price/pepe/" target="_blank" rel="noreferrer noopener">PEPE</a>), the third-biggest meme coin, was trading at $0.0000081 on Wednesday, up by over 38% from its lowest swing on Monday when stocks and most cryptocurrencies tumbled by double digits. 
Its price action has mirrored that of other <a href="https://crypto.news/stacks-floki-and-bonk-see-gains-but-a-big-risk-awaits/" target="_blank" rel="noreferrer noopener">tokens like Stacks (STX), Bonk</a>, and Solana (<a href="https://crypto.news/price/solana/" target="_blank" rel="noreferrer noopener">SOL</a>), which have all formed a hammer pattern, one of the most popular reversal signs in the market. 
Pepe had the highest volume among all meme coins, rising to over $1.43 billion, higher than Dogecoin’s (<a href="https://crypto.news/price/dogecoin/">DOGE</a>) $1.03 billion and Shiba Inu’s (<a href="https://crypto.news/price/shiba-inu/">SHIB</a>) $356 million. 
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However, Pepe’s recovery faces a few key risks. First, it is happening in a low futures open interest environment. Its <a href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank" rel="">interest stood</a> at just $71 million, down from July’s high of over $141 million.&nbsp; 
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 Pepe price | Chart by <a href="https://www.tradingview.com/symbols/PEPEUSD/?exchange=CRYPTO" target="_blank" rel="">TradingView</a>
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Second, the token has formed a few bearish chart patterns that could hinder its recovery. The most important one is the head and shoulders pattern. It recently dropped from the right shoulder level at $0.000013 and crossed the slanted neckline at $0.0000066.&nbsp; 
Therefore, if the current recovery turns out to be brief or a dead cat bounce, there is a risk that Pepe could drop to as low as $0.0000020, which is about 75% below its Wednesday levels. This level was selected by measuring the distance between the head and the neckline. 
<h2 class="wp-block-heading" id="pepe-token-invalidated-5th-elliot-wave-phase">Pepe token invalidated 5th Elliot Wave phase</h2> 
Meanwhile, Pepe has likely invalidated the impulse Elliot Wave pattern by failing to complete the bullish fifth section. 
The other potential risk is the one <a href="https://crypto.news/bitcoin-chart-showing-mixed-signals-following-crypto-black-monday/" target="_blank" rel="noreferrer noopener">previously noted on Bitcoin</a>, which could form a death cross pattern, a big bearish sign. 
Finally, Pepe remains below the 50-day and 100-day Simple Moving Averages, which have recently formed a bearish crossover pattern. Therefore, the token will likely resume the downward trend and possibly retest this week’s low of $0.0000058. A break below that level will point to more downside. 
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Pepe price forms a frightening pattern, recovery at risk

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