PEPE is finally entering a critical phase, as recent price action indicates the market is actively pushing away bears in anticipation of a possible structural shift. The pseudonymous crypto analyst ‘The Composite Trader’ states that the step is less important immediate benefit and more about completing a controlled reversal process and preventing further downsides.
In an X-post this Tuesday, The Composite Trader updated a setup he first outlined on January 5, explaining that PEPE’s sharp bullish expansion at the start of the year was never intended to last. He labeled the move as manipulative and stated so a price reversal towards an annual open was the intended result.
PEPE performs a reversal action to eliminate the bears
Its accompanying chart supports this narrative by illustrating a brutal downtrend that began in late 2025, with PEPE plummeting nearly 50% before following a descending curved channel. The analyst highlighted a Break of Structure (BOS) at a lower level in the pattern, followed by a short-lived rally in the $0.0065-$0.0075 region. This upward movement was explicitly labeled “manipulation” on the chart, pushed up to look for liquidity on the buy side, with no real demand to sustain higher prices.
Related literature: Why meme coins like PEPE and FARTCOIN are ready to explode
According to the analyst, PEPE’s ongoing reversal process is intended to dispel current bearish positions before a confirmed trend change occurs. The chart shows that the meme coin has already corrected by about 33.21%, taking some of the profit it achieved earlier this year. This move closely aligns with The Composite Trader’s previous expectation that the annual opening would be put to the test, confirming the downward momentum of the market.
The analyst also noted that similar price patterns are emerging among other altcoin pairs, which reflects the broader one impact of whale-driven movements. He has emphasized the importance of understanding the timing behind these reversals, suggesting that not every price shift signals a sustainable uptrend.
Furthermore, the Composite Trader has said that accumulation schedules and bullish reversals for PEPE will be confirmed when the time is right. Until then, the the market remains bearish with strategic price corrections, which require patience from investors and traders.
Analyst predicts further decline for PEPE price
Crypto analyst Davie Satoshi has done just that shared insights into the price behavior of PEPE and possible next steps. He predicts that PEPE could fall even further if Bitcoin crashes to $85,000 and $75,000. Based on his analysis, PEPE’s price movement is now closely tied to BTC, and the lower Bitcoin goes, the more likely PEPE will follow.
Related reading
Excluding PEPE, Satoshi predicts that all meme coins could enter a downtrend if Bitcoin is falling. Despite this bearish outlook, he believes PEPE will likely recover and rise again. The analyst expects the meme coin to reverse sharply and find new support levels. He advises non-PEPE holders to take advantage of the current downward trend buy the dip.
Featured image from Medium, chart from Tradingview.com