PepeCoin (PEPE): Anticipating Reversals using Elliott Waves

By Elliott Wave International

With just a basic understanding of the Elliott Wave Principle, you have a tool that can help you anticipate trends and trend changes.

The Wave Principle says that markets move in five waves in their primary direction (motive waves) and three waves in the countertrend direction (corrective waves).

Once a 5-wave impulse is complete, you can expect at the very least a 3-wave correction in the opposite direction.

Here's a recent real-world example that shows how Elliott Wave International's analysts were able to identify the end of a 5-wave move and the reversal that followed.

On December 6, EWI shared with subscribers this forecast for altcoin PEPE:

"Look for wave (5) to end near 0.00002630, the 1.618 multiple of wave (1)."

Result: PEPE rallied as forecast to complete wave (5) and then reversed course swiftly.

So, where's the next opportunity in cryptos?

See for yourself inside EWI's Crypto Opportunity Month. You'll find their detailed wave outlook for altcoins including PepeCoin and major cryptos: Bitcoin, Ethereum, XRP, Litecoin, Solana, Cardano and more.

Want to learn more about the Wave Principle? EWI's handy guide teaches you the essentials in just 30 minutes (it's free!)

This article was syndicated by Elliott Wave International and was originally published under the headline PepeCoin (PEPE): Anticipating Reversals using Elliott Waves. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Valuations Are at the Furthest Edge of the Financial Solar System

By Robert Prechter, excerpted from the January 2025 Elliott Wave Theorist.

Figure 1 updates our history of year-end valuations for stocks of S&P companies on two bases: price to book value (Y axis) and dividend yield (X axis). I thought the year-end 2021 overvaluation would never be surpassed. But as you can see, the year-end 2024 reading is both higher and further to the right. It is the highest multiple ever recorded for S&P Industrials’ price to book value and the fifth-lowest level for the S&P Composite’s dividend yield, the four lower readings all occurring in 1998-2001.

We have long called this our Pluto chart. Perhaps we should have expected another extreme valuation near that of 2021. After all, Pluto was discovered to be a planet pair.

The extreme readings of 1998-2001 stayed within the dashed-line channel, but the past six years’ closing valuations are all beyond it. In three of those years — 2021, 2023 and 2024 — price to book value was above that of 1999, the year of the all time high in stock indexes priced in real money (gold)...

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