Despite recent signs of recovery, PEPE has fallen 57% year-over-year, struggling to find firm footing in a shaky crypto market. However, while bearish pressure dominates, some technical indicators hint at a possible rebound that could change the tide for the popular meme token.

PEPE Trapped in a Bearish Pattern

PEPE’s price is currently trading within a falling wedge, a technical pattern often associated with bullish breakouts. However, the token’s performance remains constrained, with resistance levels preventing a decisive move upward.

Pepe Coin price could test the $0.0000050 support as the market fails to shift the current bearish trend. Source: MadWhale on TradingView

Over the last 24 hours, PEPE has posted a modest 6.7% gain, inching back from a recent low of $0.0000078 to $0.0000082. While this slight uptrend provides a glimmer of hope, analysts caution that the broader market remains indecisive.

“The key challenge for PEPE is breaking out of its falling wedge formation,” noted a crypto analyst. “While this is typically a bullish reversal pattern, buying pressure remains too weak to confirm an uptrend.”

Weak Momentum Signals Ongoing Struggle

A key indicator confirming the prevailing bearish sentiment is the Bull Bear Power (BBP) metric, which measures the strength of buyers versus sellers. Currently, PEPE’s BBP reading is in negative territory, meaning selling pressure is still dominant.

Pepe Coin’s price consolidation above the $0.0000080 support ignites the hope for upside momentum despite the current bearish sentiment. Source: Hmaroudas on TradingView

The Awesome Oscillator (AO), another technical indicator that tracks momentum, is also flashing warning signs. With its reading in the red, it suggests that PEPE’s price may continue consolidating or even decline further. If the token cannot sustain a move above $0.0000090, analysts warn that a drop to $0.0000065 could be on the horizon.

Is a 245% Surge Still Possible?

Despite the ongoing challenges, some of the market participants are hoping that PEPE is in the midst of a major breakout. The Market Value to Realized Value (MVRV) measure has dipped into the so-called “opportunity zone,” the historically bullish price rally range. The last time that the MVRV reading for PEPE was at this point, the token experienced a significant price jump.

The Pepe Coin price must break the $0.000010 psychological resistance to open the room for further gains. Source: MyCryptoParadise on TradingView

Also, the Relative Strength Index (RSI) is showing a bullish divergence, which means that PEPE could be on its way to an oversold state. With more buying pressure, it can lead to a strong bounce, and positive estimates show a potential 245% rise to its all-time high in December at $0.00002830.

“Technical indicators are converging in a way that suggests a rebound is feasible,” a market strategist said. “But overall market conditions and sentiment will ultimately decide whether PEPE can sustain a rally.”

Market Sentiment Remains Key

While technical signals provide some optimism, PEPE’s fate ultimately depends on broader crypto market trends. If top cryptocurrencies such as Bitcoin and Ethereum pick up bullish strength, PEPE might catch the wave of interest coming back. Alternatively, if the market situation does not improve, meme coins such as PEPE tend to be among the last to enjoy prolonged declines.

The daily chart suggests that Pepe Coin could initiate bearish momentum if the price rebounds from the current support at $0.0000080. Source: Mhknylmz on TradingView

In the future, investors will be watching key levels of support and resistance in PEPE. The price spiking above $0.0000090 and then maintaining its new highs would pave the way for a larger trend. Failing to do this, however, would lead to further losses toward $0.0000060.

Looking Forward: Hope for a Turnaround?

Despite its downtrend in the last year, PEPE still has potential catalysts for a turnaround. The completion of a falling wedge, a historically bullish pattern, and oversold indicators suggest that a breakout is still feasible. It will take strong buying pressure and a conducive macroeconomic environment, however, for PEPE to go back to its previous highs.

Pepe Coin price was trading at around $0.0000085, up 1.97% in the last 24 hours at press time. Source: Brave New Coin

Watch – Pepe Price Prediction video

For now, investors remain divided. While some see the present levels of PEPE as a buying opportunity, there are some who are hesitant, waiting for an unmistakable shift in sentiment in the marketplace before they enter. As the cryptosphere keeps on growing, the next steps for PEPE will be crucial to determine whether it can regain its former strength or continue its travails in the mercurial world of meme tokens.