After a forceful upward momentum, PEPE is showing signs of fatigue, entering a correction phase, and investors are speculating on what may come next. As the token pulls back from recent highs, attention now turns to key support levels that could dictate its rebound potential. Will these key levels hold and provide a rebound, or will PEPE face an extended decline?

In this article, we will discuss in detail the current PEPE price movement in the correction phase. By highlighting significant support and resistance levels, this article aims to equip investors and traders with valuable information on possible bounce zones and factors that could influence a rebound or further declines.

Understanding PEPE Correction: What Caused the Retraction?

PEPE recently made a bearish move on the 4-hour chart, facing forceful resistance at $0.00001152. This struggle to maintain the uptrend triggered a decline, pushing the asset towards the 100-day basic moving average (SMA). A drop below this SMA could raise selling pressure, while a rebound could signal a potential price reversal.

Analysis of the 4-hour Relative Strength Index (RSI) suggests that bullish strength may be waning. Currently, the RSI has fallen to around 68% from the overbought zone, which indicates that buying pressure is waning. If the RSI continues to decline, it could mean that the market is becoming more oversold, which could open the door to a deeper correction.

On the daily chart, PEPE is showing significant negative movement, reflecting a bearish candlestick. This continued downward trend highlights the prevailing selling pressure in the market. While the meme coin is currently trading above the 100-day SMA, which is typically viewed as a bullish indicator, the strength of the bearish candle suggests that upside momentum may be circumscribed.

Finally, on the 1-day chart, the RSI signal line after rising above it approaches the critical level of 50%. The 50% mark represents the neutral zone, suggesting a balance between buying and selling pressure. A drop below 50% could signal a shift towards bearish sentiment, while remaining above 50% or rising above 50% could signal continued upward momentum, which could lead to further price increases.

Where PEPE can find stability

Key support levels are key price points where PEPE can find stability and reverse the current downtrend. One of the main support levels to watch is the $0.000000766 level, which has acted as a key support level in the past. If the PEPE price approaches this level, it could trigger renewed purchasing interest, which could lead to a rebound.

However, if the meme coin breaks above this level, it could lead to a prolonged decline, possibly pushing the price towards $0.00000589 and higher.