Pepe Faces Resistance, But a Bullish Turn Could Be on teh Horizon
Pepe (PEPE) is currently hitting a local resistance zone. This isn’t necessarily a bad thing. It could actually be the start of a bullish continuation. Traders are looking for a higher low, which could signal a strong move upwards.
The resistance area aligns with the 0.618 Fibonacci retracement and the value area high. If Pepe rejects this level, it might form a higher low. This is a classic bullish signal if it’s confirmed.
- Pepe is testing a local resistance around the 0.618 Fib and value area high.
- A rejection could lead to a retrace towards the point of control.
- A higher low structure would confirm a bullish continuation.
Should Pepe reject this resistance, it may move down towards the point of control. This area also aligns with the VWAP support level. If Pepe takes out the swing low but quickly closes above it, it would confirm a higher low structure. This sets the stage for a rally towards the recent swing high.
Such a move could result in a 35% upside push, provided the broader market remains favorable. If Bitcoin and Ethereum continue trending upward, Pepe is likely to follow. Though, if the point of control fails, the scenario shifts towards lower levels being tested again.
For now, the market dynamics favor a bullish continuation. The reaction around this technical region will be pivotal. The presence of confluence, including the 0.618 Fibonacci, value area low, and point of control, makes this a strong candidate for a base before the next leg higher.
What to expect in the coming price action? As long as Pepe finds support around the point of control and the VWAP confluence, the structure favors the formation of a higher low. If confirmed, traders can anticipate a move back toward the swing high, offering a potential 35% upside. However, failure to hold this region will flip the bias bearish and open the door for further downside.
