PEPE Bounces Back: 10% Dip Fuels Bullish Rally Chatter

Memecoin traders are licking their chops as PEPE shakes off a 10% pullback—classic ’buy the dip’ psychology in action.

When Lambo? Not yet, but the chart patterns suggest this frog-themed token isn’t done hopping. Technicals point to trend continuation, though let’s be real—since when did crypto markets follow logic? Another day, another speculative frenzy dressed up as ’technical analysis.’

Key technical points

• Support Zone Confluence: Price is testing support at the value area high, aligning with the 0.618 Fibonacci retracement and VWAP — a strong bullish confluence.
• Bullish Market Structure: Higher highs and higher lows continue to define the uptrend; current pullback is seen as a constructive retest.
• Volume Profile Insights: A recent volume climax may signal a local top, but continuation above resistance will require fresh volume influx.

Following the rejection at local resistance, Pepe has pulled back into a high-probability demand zone. This area — defined by the value area high, the 0.618 Fibonacci level, and the VWAP — is acting as a dynamic support zone. These overlapping indicators make it a prime location for bulls to defend and re-establish momentum.

From a structural standpoint, PEPE is maintaining a clear pattern of higher highs and higher lows. The recent correction does not invalidate the bullish trend but instead provides a reset within it. As long as the higher low structure remains intact and price closes above the current support zone on the 4-hour chart, further upside looks increasingly probable.

Volume also plays a pivotal role here. While a recent volume climax hinted at short-term exhaustion, it does not signal a long-term reversal. Rather, it’s a marker of a local top. For PEPE to push higher and breach the current resistance, buyers will need to step in with conviction, marked by increased and sustained volume levels.

What to expect in the coming price action

If PEPE holds this key support zone, a MOVE back toward local resistance becomes likely. A successful breakout, backed by volume, could trigger an expansion phase and new highs. Until the bullish structure is invalidated, dips like this continue to offer potential buying opportunities.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.