The price of PEPE is approaching a critical reversal area, igniting trader speculation about a possible recovery. After experiencing a steady decline over recent weeks, several analysts are now suggesting that the downturn may be nearing its end as technical patterns begin to tighten.
Currently, PEPE is trading within a long-term support zone, which has previously halted various declines this year. This price action resembles a falling wedge, a pattern often indicative of trend exhaustion. The movement is closely aligned with the lower boundary where liquidity tends to accumulate before significant price reactions occur. Analysts believe that this compression increases the probability of a sharp upward movement.
The weekly chart indicates that PEPE has successfully defended a notable level of horizontal support, with buyers gradually absorbing selling pressure. Despite muted trading volume, the prevailing structure suggests that bearish momentum is beginning to wane.
In further analysis, the chart from PepeCZ illustrates a broad wedge formation that has persisted for several months. This chart indicates that PEPE has completed a cycle from breakout to retest, followed by a significant retracement into the wedge floor. The model anticipates a robust rally from the current zone, potentially recovering previous consolidation levels.
According to PepeCZ, the formation of new impulse waves is likely once PEPE breaks free from the current range of compression. The market is expected to stabilize before attempting to break through mid-range resistance. The analysis also points to a potential reclaim over previous horizontal barriers, which could lead to price levels last observed earlier in the year during peak bullish activity.
However, another perspective from analyst Ali indicates a completed head and shoulders pattern, which typically points to further downside. His analysis suggests a bearish target near $0.00000185. The neckline has already been breached, and the price continues to trend lower beneath significant Fibonacci levels.
Ali mentions that the validity of this bearish structure could be invalidated if PEPE manages to reclaim the neckline with sustained momentum. Despite a bearish outlook, there is a chance that selling pressure might diminish around the lower Fibonacci extensions. Historical trends show that steep declines in previous cycles have often been followed by aggressive recoveries.
On a different note, PepeWhale has pinpointed a falling wedge on the one-hour chart, indicating repeated interactions with upper and lower trendlines. Such patterns usually appear at the conclusion of a downtrend, particularly in volatile meme assets. The analyst highlights support levels between $0.00000455 and $0.00000470, where trading volume has historically increased. A decisive breakout above $0.00000490 would strengthen the case for a potential price reversal.
Additionally, on-chain signals are suggesting an increase in the relative strength index (RSI) from oversold conditions. A bounce from extreme levels is often associated with short-term reversals. Volume behavior remains critical, as low liquidity assets require confirmation to establish a trend change. PepeWhale notes that rallies of 10-20% are common following decisive breaks from wedge formations, particularly when market conditions favor upward movement.
In conclusion, while the potential for a breakout exists, traders should remain vigilant given the mixed signals from various analysts. The ongoing developments will be crucial in determining PEPE“s medium-term trajectory.
