Pepe Rejection Anticipated Before Bullish Continuation: Crucial Levels to Watch

Pepe is at a crucial juncture, having encountered a rejection from an essential resistance level that corresponds with the 0.618 Fibonacci retracement. Currently, the price action is testing the lower boundaries of its active trading range.

The memecoin Pepe (PEPE) has seen increased volatility over the last 24 hours, following a clear rejection from a significant resistance level tied to the 0.618 Fibonacci retracement. As the token hovers just above the value area low of its range, traders are intently watching for signs of either a continuation or a breakdown. This area is evolving into a battleground between a bullish higher-low pattern and a bearish rejection trend.

Key Technical Insights

• Rejection at 0.618 Fibonacci: The price faced resistance at a critical level closely associated with the golden Fibonacci ratio.
• Support at Value Area Low: PEPE is maintaining support at the VAL, which is a crucial aspect of the current trading range.
• Potential Shift to Point of Control: A drop below the VAL might lead to a complete retracement back to the point of control, where another 0.618 Fibonacci level resides.

After being rebuffed from the 0.618 Fibonacci level, PEPE rapidly retreated to the value area low of the range. This rejection underscores the strength of the overhead resistance, and the market is now at a pivotal crossroads: either form a higher low to enable bullish continuation or revert to the point of control if support fails.

The POC stands as a strong candidate for support due to the convergence of volume along with another 0.618 Fibonacci retracement level. A reaction from this area could confirm the next higher low, thereby reinforcing the bullish structure; whereas, failing to hold this level is likely to indicate weakness and open the doors to a more substantial decline.

Despite the recent downturn, PEPE has not completely collapsed. From a technical perspective, the current setup still validates the possibility of a higher-low scenario. This implies that dips toward POC support could represent buying opportunities, but only in conjunction with confirmation signals such as bullish engulfing candles or spikes in volume.

A potential double bottom pattern is also taking shape, although traders should proceed with caution in relying solely on this formation without further supporting evidence. The interplay of structure, Fibonacci alignment, and volume profile levels will be essential in confirming the reliability of this potential reversal zone.

What to Expect in the Next Price Action

If PEPE can remain above the POC and establish a confirmed higher low, the token may try for another ascent towards the range highs. On the other hand, a loss of support will redirect attention to deeper downside levels and likely indicate a breakdown from the current range structure.