Pepe (PEPE) forms potential higher low pattern following rejection — 35% upside possible?

The PEPE token shows signs of establishing a higher low after recent price rejection, with technical indicators suggesting a potential 35% rally if bullish momentum sustains. Traders are monitoring key support levels for confirmation of this upward trajectory.

Key points

• Pepe is testing a local resistance area around the 0.618 Fib and value area high.
• A rejection could lead to a sweep of swing low liquidity near the point of control.
• Bullish structure remains intact if a higher low forms and price reclaims support.

Should this rejection play out, price action is expected to rotate down toward the point of control region, which also aligns with the VWAP support level, creating strong technical confluence. Liquidity has been building beneath the current range since last Wednesday, and a sweep of that liquidity would be in line with a swing failure pattern (SFP). If price takes out that swing low but quickly closes back above it, this would confirm a higher low structure on the local timeframe — a strong bullish signal that sets the stage for a rally toward the recent swing high.

Such a move could result in a 35% upside push, provided broader market conditions remain favorable. It’s worth emphasizing that this pattern relies heavily on a supportive macro environment, particularly strength in majors like Bitcoin and Ethereum. If those assets continue trending upward, Pepe is likely to follow with a bullish reaction from support. However, if that point of control fails to hold and VWAP support breaks down, then the scenario shifts toward lower levels being tested again, possibly invalidating the higher low thesis.

For now, the market dynamics are still leaning toward bullish continuation. Price structure remains intact, and the reaction around this technical region will be pivotal. The presence of confluence — including the 0.618 Fibonacci, value area low, and point of control — makes this a strong candidate for a base before the next leg higher. If this setup fails, then it simply confirms another lower high and the likelihood of a lower low. But the current structure and liquidity profile suggest a bounce is more probable.

What to expect in the coming price action

As long as PEPE finds support around the point of control and the VWAP confluence, the structure favors the formation of a higher low. If confirmed, traders can anticipate a move back toward the swing high, offering a potential 35% upside. However, failure to hold this region will flip the bias bearish and open the door for further downside.