Pepe Faces a Crucial Moment as It Rejects from a Key Resistance Level

Pepe (PEPE) is facing a crucial moment as it rejects from a key resistance level aligned with the 0.618 Fibonacci retracement. Price action now tests the lower bounds of the current trading range.

After being rejected from the 0.618 Fibonacci level, Pepe quickly retreated to the value area low of the range, confirming the strength of overhead resistance. This zone also coincides with a 0.618 Fibonacci retracement, creating a triple confluence of support.

As the token trades just above the value area low, traders are watching closely for signs of either continuation or breakdown. This zone is becoming a battleground between a bullish higher-low formation and bearish rejection continuation. A reaction from this area could validate the next higher low and preserve the bullish structure, but failure to hold it will likely confirm weakness and open the door to a deeper decline.

Key technical points:

• After hitting a major resistance at the 0.618 Fibonacci level, Pepe experienced a strong rejection, leading to a swift price drop.

• The rejection at the 0.618 Fibonacci coincides with the upper boundary of the current trading range, further highlighting the resistance strength.

• As the price action fell, it encountered the value area low of the range, a zone with high trading activity and potential support.

• The lower 0.618 Fibonacci retracement level and the point of control (POC) provide additional support candidates in deeper spatial price levels.

• The POC is a spatial price level with high confluence as it coincides with a 0.618 Fibonacci retracement and a volume cluster, making it a key level to watch for support or breakdown.

Despite recent weakness, Pepe has not fully broken down. Technically, the current setup still offers a valid higher-low scenario. This means that dips toward POC support could be treated as buying opportunities, but only if confirmation signals such as bullish engulfing candles or volume spikes occur.

There is also a potential double bottom pattern forming, though traders should be cautious about relying on this formation without additional confluence. The combination of structure, Fibonacci alignment, and volume profile levels will be key to confirming the reliability of this potential reversal area.

What to expect in the coming price action

If Pepe can maintain its footing above the POC and form a confirmed higher low, the token may attempt another move toward range highs. However, loss of support will turn attention to deeper downside levels and a likely breakdown from the current range structure.