PEPE Faces Critical Support Test Amidst Downtrend
PEPE has experienced a important 13% drop, confirming a new lower low and extending its bearish trend. The price is now heading towards a crucial support level known as the point of control (POC).
After failing to break above the value area high, PEPE faced a strong rejection at the 0.618 Fibonacci level. This rejection triggered a sharp decline, pushing the price further down. The current structure suggests a continued downward movement.
Key points to watch:
- Downtrend confirmed with a lower low on the daily chart.
- Rejection at the 0.618 Fibonacci level accelerated the sell-off.
- The next major test is at the POC, which could either provide support or lead to a deeper fall.
The POC is a critical zone, aligning with the 0.786 fibonacci retracement and monthly high-timeframe support. If the POC holds, it could stabilize the price and perhaps lead to a bounce. However, if it fails, the price may drop towards the value area low.
traders should monitor the POC closely. If buyers step in, a short-term reversal might occur.If not, further declines are likely.
For more insights, check the POC could be a turning point. A successful defence here could signal a potential reversal. However, if the POC fails to hold, the price may continue to fall towards the value area low.
Traders should keep a close eye on the POC. Its performance will determine the next move for PEPE.
