Pepe has rejected from the value area high and is now trending toward a key dynamic support. This level has historically triggered bullish reversals and could determine the next major move.
Summary
- Pepe faces short-term weakness after rejecting from the value area high, signaling a possible shift in momentum.
- Dynamic support and the 0.618 Fibonacci retracement are aligning, forming a critical zone for a potential bullish reversal.
- Failure to hold this support may lead to a deeper correction toward the value area low, while holding could resume the uptrend.
Pepe (PEPE) is showing signs of weakness after a strong rally from high time frame support. Price action previously bounced from a confluence zone including dynamic support, a bullish order block, and the 0.618 Fibonacci retracement. That move was backed by increasing volume until price hit resistance at the value area high. The memecoin is now pulling back, and the next test of dynamic support could be critical for sustaining the broader uptrend.
Key technical points
- Value Area High Rejection: Price failed to break through resistance after a volume-backed rally.
- Dynamic Support Test Ahead: The trendline aligns with the 0.618 Fibonacci retracement.
- Point of Control Lost: Price has accepted below the POC, signaling a deeper correction may be underway.
Following a strong rally from dynamic support, PEPE ran into resistance at the value area high and was rejected. This zone had marked a clear cap on recent upside attempts, and price has since drifted lower. The rejection came despite a volume-backed move upward, suggesting that sellers are still defending this level.
Price is now trading below the point of control, indicating acceptance in lower value territory. Historically, this has often led to further downside until a strong support level is reclaimed. The next major level to watch is the dynamic support trendline, which intersects with the 0.618 Fibonacci level drawn from the recent swing high to swing low. This zone also overlaps with a previously respected bullish order block.
If bulls step in again at this level, it would mark another higher low in the broader structure. This would preserve the overall bullish bias and set up a potential move back toward the value area high. However, a breakdown below dynamic support could shift the market structure and expose PEPE to deeper losses toward the value area low.
What to expect in the coming price action
Price is likely to revisit dynamic support soon. If it holds, another rally toward recent highs is possible. If it breaks, expect a drop into lower value territory. Volume will confirm direction.
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