PEPE’s rally came to a screeching halt as price met rejection at the resistance level and began to fall towards the key support level of $0.00001152. Following its mighty rally, the token has faced significant selling pressure, raising concerns about the sustainability of its bullish strength. Now all eyes are on the $0.00001152 level to determine whether it can support a rebound or if this is the beginning of a deeper pullback.
The purpose of this article is to discuss PEPE’s recent price action, which has encountered resistance, causing the rally to stall and the price to decline towards the key support level of $0.00001152. Based on technical analysis, this article assesses whether USD 0.00001152 will provide a reliable support zone for a potential recovery or if bear pressure will push PEPE even further lower.
Resistance strikes: what stopped PEPE’s momentum?
Recently, PEPE price turned bearish on the 4-hour chart, retreating towards the $0.00001152 level and the 100-day basic moving average (SMA) after encountering significant resistance at $0.00001313. This pullback signals growing bear pressure that could trigger a deeper correction in the cryptocurrency.
The 4-hour relative strength index (RSI) shows a decline from 77% to 60%, indicating a weakening of confident momentum. As the RSI approaches the neutral level, buying pressure decreases and market confidence in the uptrend decreases. In particular, this change suggests that PEPE may be entering a correction phase, with the potential to move further down if the trend continues.
Although the PEPE Index is trading above the 100-day SMA, the daily chart shows increasing negative sentiment with bearish candlesticks and a decline towards $0.00001152, reflecting increasing selling pressure as the meme coin struggles to sustain higher levels. If bulls fail to defend current support, further declines are possible, making the 100-day SMA crucial to watch for a reversal or continuation of a corrective move.
Finally, on the 1-day chart, the RSI is falling from its high of 69%, indicating a potential change in momentum. As the RSI approaches the 70% overbought threshold, it shows that buying pressure is waning and the recent uptrend may be losing steam. The decline could signal a pullback or consolidation, with PEPE likely to enter a correction phase before attempting to regain upward pressure.
Can the $0.00001152 level hold as support?
The market is testing its strength as PEPE price approaches the key support level of $0.00001152. This level has become crucial in determining whether the current bearish momentum will continue or whether the price can stabilize. If the 0.00001152 level holds, it could be the basis for an eventual rebound, allowing the bulls to regain control and resume the uptrend.
However, a break below this level could signal additional declines that could push the price towards the $0.00000766 support range and other lower levels.
