Pepe Coin (PEPE) Price Shows Strong Upward Momentum, but Technical Signals Point to a Possible Short-Term Pullback

Pepe Coin (PEPE) price has recently shown strong upward momentum, but technical signals are pointing to a possible short-term pullback. Market analysts are closely watching the charts after a sell signal was identified by the TD Sequential indicator, with signs of bearish divergence emerging. This follows a more than 130% increase from recent lows, raising questions about whether the current trend will continue or correct in the near term.

The price of Pepe Coin (PEPE) has shown strong upward momentum recently, but technical signals are suggesting a possible short-term pullback.

After reaching highs of 0.00001539, the TD Sequential indicator has now identified a sell signal on the daily chart. This follows a more than 130% increase from recent lows, which may lead to some profit-taking or a natural pause in the bullish trend.

As indicated by the chart shared by Ali_charts, the daily time frame of PEPE/USDT highlights a clear uptrend. The token encountered resistance at the 1.0 Fibonacci extension level, which coincides with a key psychological resistance zone around 0.00001539.

Sell signals were spotted at two distinct levels. The first emerged at the 0.618 Fibonacci retracement level, and the second appeared just below the 1.0 Fibonacci extension. These areas are typically recognized as zones for profit-taking or distribution during strong rallies.

After attaining this resistance band, the price is now exhibiting signs of a pullback. This aligns with the common behavior observed after a significant upward move, as it provides an opportunity for technical indicators to cool down from overheated levels.

The overall technical structure remains bullish as long as PEPE manages to stay above the 0.786 Fibonacci support at around 0.00001245. A breakthrough below this support could invalidate the identified upward pattern and pave the way for a deeper correction.

Additional technical indicators on the daily chart suggest that bullish momentum may be slowing. The Bollinger Bands, which measure price volatility, show that PEPE was rejected from the upper band and is now moving back toward the mid-band. This type of movement often signals a short-term consolidation in price.

The Relative Strength Index (RSI), which compares the magnitude of recent price gains to the amount of recent price loss, reached an overbought level of 71.85 and is now starting to decline. A decrease in the RSI with the price continuing to rise can signal that the momentum is on the decline despite price stability.

Although the Awesome Oscillator, which measures the difference between two Simple Moving Averages, continues to be positive, the histogram bars are decreasing, further supporting the idea that the price may not continue to rise. In addition, the CVD is currently negative, meaning more selling has happened than buying in the recent sessions.

According to Satori_BTC, who specializes in technical analysis, PEPE is currently testing the 0.00001250-0.00001300 zone again on the 4-hour chart.

A strong surge in the number of buyers during the breakout from this zone is evident when we look at the increased volume. While trading is doing well, it has seen a slight decline after the last pullback.

If the current range holds, PEPE could rise to 0.00001700, which is an increase of almost 30% from the last time it hit this resistance. However, failing this support could see the price drop towards the next support point at 0.00001043.

Many traders are still expecting the price of PEPE to rise, even though the token has seen a 12% dip from recent highs. According to the latest price prediction from DigitalCoinPrice, which is based on an algorithm that tracks historical price movements, technical indicators, and news sentiment, PEPE is forecast to increase by as much as 224% by mid-June 2025.

The bulk of this price surge is expected to take place in 2024, with the price potentially reaching $0.00006 in December 2024. By mid-June 2025, the algorithm predicts that the price of PEPE could stabilize at around $0.000046.

Many traders will be keeping an eye on this support zone in the coming period. If the price manages to close back above the recent high of 0.00001526, it would lessen the strength of the sell signal. Conversely, a move lower and a close below the 0.00001245 level would signal the beginning of a deeper pullback from the current pattern.