Following its recent breakout, PEPE has seen a noticeable decline as it looks to retest key support levels. This retest is crucial for the cryptocurrency as it will determine whether the bullish momentum can continue or if the price will struggle to stay above this level.
The purpose of this article is to analyze the recent price action of PEPE as it falls to retest the critical support at $0.00000766 after breaking out. It will examine whether this support level can hold and lead to a rebound, potentially setting the stage for a renewed uptrend, and explore potential scenarios for its next move.
Analysis of the current PEPE market situation
On the 4-hour chart, PEPE is currently trading above the 100-day straightforward moving average (SMA), indicating an overall positive trend. However, the crypto asset is experiencing significant bearish momentum that could see the price decline towards the $0.00000766 level for a key retest.
Additionally, on the 4-hour chart, the Relative Strength Index (RSI) signal line is currently at 66%, moving down from the overbought zone towards the 50% threshold. This decline indicates growing bearish momentum, suggesting a higher probability of PEPE approaching the $0.00000766 support level.
On the 4-hour chart, PEPE appears to be sinking towards the $0.00000766 support level, while also approaching the 100-day SMA. Despite this short-term decline, recent bullish market sentiment suggests that this decline may be fleeting and could potentially lead to a rebound in the near future.
Finally, the 1-day RSI signal line that had risen to 51% is now falling towards the 50% level. The drop in RSI indicates a potential weakening of the upside momentum, reinforcing the likelihood of a pullback to support for further evaluation.
PEPE Support Test Assessment: Will the 0.00000766 Level Hold?
If the 0.00000766 level holds in the face of selling pressure, it could indicate a potential rebound and continuation of the uptrend towards the next resistance at 0.00001152. A successful breakout of this resistance level could signal a stronger upside move, paving the way for further price gains to even higher levels.
However, if $0.00000766 fails to hold as support, it could lead to further declines towards the $0.00000589 support level. If PEPE breaks below this level, it could move on to challenge the $0.00000398 range and beyond.
Over the past 24 hours, PEPE traded at around $0.00007822, up 6.93%. The cryptocurrency’s market capitalization rose to over $3.2 billion, and the trading volume exceeded $527 billion, up 6.94% and 59.38%, respectively, over the past day.
