The popular memecoin PEPE is navigating a critical technical juncture after experiencing a decisive rejection from the 0.618 Fibonacci retracement level, sending the token retreating toward the Value Area Low (VAL) of its current trading range. This rejection has created a pivotal moment for PEPE traders as the price action now sits precariously between maintaining a bullish higher-low formation and potentially breaking down to retest deeper support levels. With increased volatility over the past 24 hours, market participants are closely monitoring for confirmation signals that will determine the next directional move.
Technical analysis reveals multiple confluent factors at play, with the rejection at the “golden” Fibonacci level demonstrating the strength of overhead resistance, while current support at the Value Area Low serves as the final defense before a potential rotation to the Point of Control (POC). This deeper support level carries additional significance due to its alignment with a second 0.618 Fibonacci retracement and heightened trading volume, making it a logical target should current support fail. Despite recent weakness, the overall structure remains potentially bullish if PEPE can establish a higher low and generate confirmation signals like bullish engulfing candles or notable volume increases.
Looking ahead, PEPE faces a binary scenario that will likely resolve in the coming days – either maintaining support to preserve its bullish structure for another attempt at range highs, or breaking down to retest the Point of Control where buyers may step in more aggressively. A potential double bottom formation adds another layer to the technical picture, though this pattern requires additional confirmation before being considered reliable. Traders should exercise caution while watching these key technical levels, as the resolution of this consolidation phase could determine PEPE’s trajectory in the near-term trading environment.
