Pepe Coin Surges 30%, but Major Resistance Could Trigger a Pullback

Pepe (PEPE) has experienced a strong 30% rally after finding support at a significant market low. While the recent price action has been positive, the memecoin is now approaching a critical resistance zone that could result in a temporary correction before any further upward momentum.

Key Technical Insights

  • 30% Rally from Swing Low: PEPE has rebounded sharply from a key support level, signaling a potential bullish trend shift.
  • Major Resistance Confluence: Price is now encountering a cluster of resistance, including the Point of Control (POC), a high-timeframe horizontal resistance, and the 0.618 Fibonacci retracement from the previous decline.
  • Healthy Correction Possible: A rejection at this level could allow for a natural pullback, forming a higher low and maintaining the bullish structure.

Understanding the Resistance Zone

From a technical standpoint, the current price level represents a significant resistance area for PEPE. This region is marked by:

  • Point of Control (POC): The price level where the highest trading volume has occurred historically, making it a key area of interest for market participants.
  • 0.618 Fibonacci Retracement: A critical level often associated with trend reversals in financial markets.
  • High-Timeframe Horizontal Resistance: A previously tested level that has capped bullish momentum in the past.

These technical factors combine to create a zone where buyers may slow down, and profit-taking could emerge. If this happens, a pullback would not only be expected but would also align with a healthy bullish market structure.

Potential Scenarios for PEPE’s Price Action

As PEPE tests this resistance cluster, two primary outcomes are likely:

  • Scenario 1 – Pullback: If the price fails to break above the resistance, a correction toward a high-timeframe support level could follow. This would allow for a retest and potentially form a higher low, which is essential for sustaining the uptrend.
  • Scenario 2 – Breakout: If bullish momentum persists, PEPE could break above the resistance zone. In this case, a push through the value area high would confirm a new swing high, signaling continued strength and paving the way for further upside.

Short-Term Outlook

PEPE is currently at a critical juncture. The resistance zone around the POC and 0.618 Fibonacci retracement will likely determine the next phase of price action. If buyers fail to overcome this zone, a pullback to establish a higher low would keep the bullish structure intact. On the other hand, a breakout above this cluster would indicate accelerating strength and open the door to new highs.

Traders should closely monitor this area as it represents a key decision point for PEPE’s price trajectory. Whether the market consolidates or breaks out, the coming moves will provide a clearer picture of the next trend direction.

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