- Pepe fell below the support zone from February and bears remained in control.
- The slight bullish momentum divergence might not amount to a sizable price bounce shortly.
Pepe [PEPE] retested a key level as resistance yet again. This came after it slipped below the 78.6% retracement level plotted based on the rally that commenced in the second half of 2024.
The loss of the February lows meant the bearish pressure was firm.
Pepe was not the only token suffering under the yoke of the sellers- it was a common theme across the market, but especially in the memecoin sector.
PEPE to fall to August 2024 low, potentially even deeper
Source: PEPE/USDT on TradingView
It was not a pretty sight for the bulls. The price fell below the support level it established in February and retested as resistance during the Sunday pump.
Since then, the price has made a new lower low, continuing the downtrend.
The OBV has been relatively flat as the spot trading volume has been low since late December. The retracement in recent months was different in this regard from the retracement from May to August 2024.
Back then, the OBV dropped by a greater margin. It was a slightly bright spot, but bulls were likely to experience more pain.
While the OBV lacked a steady trend, the RSI has been below neutral 50 for the majority of 2025, showcasing the memecoin’s bearish trend.
The RSI and the price formed a hidden bullish divergence over the past few days, but this kind of divergence is usually weak. Besides, we already saw a bounce over the weekend and another one might not be immediate.
Source: PEPE/USDT on TradingView
The 4-hour chart showed a range formation toward the end of February. It saw a deviation to the upside that retested the $0.00009 resistance and fell below the range lows. However, the OBV was floating around the same local lows.
Was this a deviation beneath the range before a move higher? Unlikely, but possible – traders should be prepared for this scenario, but trade based on the evidence at hand.
The firm rejection from $0.00009 meant that bears were firmly in control.
The mid-range level coincided with the low set on the 3rd of February, marking it as an additional short-term price target that could stall any bullish efforts. To the south, the $0.0000585 was the next support.
The lack of liquidation levels below current market prices showed that the price might consolidate around $0.00007 before moving anywhere.
Across different periods, the $0.00009 zone popped up as a noteworthy magnetic zone for PEPE in the short term.
A 30% bounce did not seem likely for PEPE. The $0.000073 zone appeared to be a magnetic zone of some strength on the lower timeframes and could present a selling opportunity upon a retest.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
