Pepe Primed for Epic Reversal: Bulls Defend Key Support, Target New Swing Highs

Meme coin Pepe shows signs of life as buyers step in at critical support. Traders eye a potential breakout—because what’s crypto without a little hopium?

Key levels hold firm while the crowd watches for the next leg up. Will this turn into another 'buy the rumor, sell the news' circus? Only time—and leverage—will tell.

Remember: In crypto, 'fundamentals' are just a funny way to spell 'FOMO.'

Key technical points

• Support Zone: Dynamic level previously respected with strong bullish follow-through.
• Rejection Point: Value area high was respected exactly, causing the recent correction.
• Confirmation Trigger: Reclaim of point of control and above-average bullish volume needed for continuation.

Pepe’s corrective structure began after a clean rejection from the value area high, which was respected to the dollar. This rejection came amid a lack of significant volume, preventing the price from reaching the previous swing high. Since then, price has rotated lower and is now resting on a dynamic support zone that has acted as a springboard in prior bullish moves.

This dynamic support has already been tested on multiple occasions and now holds several candle closers on the daily chart, suggesting short-term demand is present. The consolidation at this zone is critical from a market structure perspective, as it could establish another higher low, continuing the trend of consecutive higher highs and higher lows.

To confirm a shift back to bullish momentum, price must remain above this support and ideally reclaim the point of control on a closing basis. The point of control represents the zone of most traded volume and is a key battleground for market participants. A close above this level WOULD signal strength and likely trigger a move toward the swing high and eventually new highs.

Volume remains a critical component of the setup. A successful breakout requires above-average bullish influxes, as weak volume would indicate insufficient buying power to sustain any upward move. As such, volume trends in the coming days will be key to validating or invalidating this potential reversal.

If support holds and volume confirms, PEPE could rotate cleanly back into the swing high region, with continuation targets forming at new local highs. However, if the dynamic support fails, the structure would be broken, opening the door for a deeper retracement toward previous range mid or value area low.

What to expect in the coming price action

Pepe is consolidating at a high-probability support level. A bounce and reclaim of the point of control could send price back to the swing high. Watch for strong volume confirmation.