The PEPE rally has come to an abrupt halt as the price faces rejection at resistance and starts falling towards the key support level at $0.00001152. After strong upward push, the token has experienced significant selling pressure, raising concerns about the sustainability of its bullish strength. Now all eyes are on $0.00001152 to determine if this can support a recovery or if this is the start of a deeper pullback.
This article aims to navigate PEPE’s recent price action as it hits resistance, stalling the rally and sending the price down towards the crucial support level at $0.00001152. Through technical analysis, this piece assesses whether $0.00001152 will serve as a reliable support zone for a potential recovery or whether bearish pressure will push PEPE further down.
Resistance Strikes: What Stopped PEPE’s Momentum?
Recently, the price of PEPE turned bearish on the 4-hour chart, retreating towards $0.00001152 and the 100-day Simple Moving Average (SMA) after encountering significant resistance at $0.00001313. This retracement signals growing bearish pressure, which could trigger a deeper correction for the cryptocurrency.
The 4-hour Relative Strength Index (RSI) shows a decline from 77% to 60%, indicating a weakening of positive momentum. As the RSI moves closer to neutral, buying pressure has diminished and the market’s confidence in the uptrend is waning. Specifically, this shift suggests that PEPE may be entering a correction phase, with the possibility of further downward movement if the trend continues.
Although PEPE is trading above its 100-day SMA, the daily chart shows increasing negative sentiment with bearish candlesticks and a decline towards $0.00001152, reflecting rising selling pressure as the meme coin struggles to hold higher levels . If the bulls do not defend the current support, further declines are possible, making the 100-day SMA crucial to watch for a reversal or continued correctional move.
Finally, the RSI on the 1-day chart is declining from its peak of 69%, indicating a possible shift in momentum. With the RSI approaching the 70% overbought threshold, this shows that buying pressure is easing and the recent uptrend may be losing steam. The decline could signal a pullback or consolidation, with PEPE potentially entering a correction phase before attempting to regain upward pressure.
Could the $0.00001152 level serve as support?
The market is testing its strength as the price of PEPE approaches the key support level at $0.00001152. This level has become crucial in determining whether the current bearish momentum will continue or if the price can stabilize. Should $0.00001152 hold, it could provide a basis for a possible recovery, allowing bulls to regain control and resume the uptrend.
However, a breakdown below this level could indicate further declines, which could push the price towards the $0.00000766 support range and other lower levels.