Can PEPE Shake Off Bearish Pressure and Hit the $0.000020 Resistance?

The memecoin’s price action suggests strong selling pressure, while technical indicators point to further downside risks. Market sentiment remains bearish as PEPE faces increased competition from Solana-based meme coins and diminishing investor confidence.

While some analysts see potential for a rebound, the challenges in overcoming current resistance zones make it unlikely that PEPE will reach $0.000020 in the short term. Weak technical structure, declining smart money interest, and an overall risk-averse market are keeping the token under pressure.

PEPE has yet to break free from its bearish trajectory despite brief moments of recovery. The price is currently hovering near $0.000010, having lost about 50% of its value in the past month. Although it experienced minor gains recently, the token remains trapped below key resistance levels, making a push toward $0.000020 difficult.

The $0.000016 level remains a critical resistance to PEPE’s price. Source: Richtv_Official on TradingView

One major obstacle is the heavy on-chain resistance between $0.000016 and $0.000021. Data suggests that approximately 75 trillion PEPE tokens are held at a loss within this price range. If PEPE approaches this level, holders may sell to break even, increasing selling pressure and making it harder for the price to move higher.

Adding to the bearish outlook, PEPE’s daily chart has formed a head and shoulders pattern, a classic indicator of trend reversals. The breakdown of this formation suggests that the memecoin could face even more downside if it fails to establish new demand.

Investor sentiment around PEPE has worsened, with smart money investors reducing their holdings. The number of high-profile PEPE holders has dropped significantly, indicating a lack of confidence in the token’s long-term potential. This decline mirrors the broader trend among Ethereum-based meme coins, which have lost momentum to Solana’s rapidly growing meme coin ecosystem.

The PEPE price has the potential to retest the $0.000008 support and further decline following the formation of the ‘death cross’ pattern. Source: Lingrid on TradingView

Futures market data further confirms this weakening sentiment. Open interest in PEPE derivatives has fallen from a year-to-date high of $556 million to just $282 million. This reduction signals waning speculative interest and suggests that traders are shifting focus elsewhere.

The death cross pattern forming on PEPE’s chart adds to the concerns. This technical formation, where the 50-day moving average crosses below the 200-day moving average, is considered one of the strongest bearish signals in financial markets. If confirmed, it could accelerate PEPE’s downward trajectory.

While PEPE remains under pressure, it is currently testing a crucial psychological support level at $0.000010. A breakdown below this zone could trigger another sell-off, with analysts identifying $0.000008 as the next major support level.

PEPE was trading around $0.000010, up $0.27% in the last 24 hours as of press time. Source: Brave New Coin

However, there are some signs that a reversal could be possible. The funding rate for PEPE has recently turned positive, indicating that long positions are gradually returning. Additionally, some indicators, such as the Relative Strength Index (RSI), suggest that PEPE is approaching oversold territory, which could lead to a temporary rebound.

Even if the PEPE price sees a relief bounce, the road to $0.000020 remains difficult. With strong resistance overhead and a lack of fresh buying momentum, the token will need a significant shift in sentiment to regain its upward trajectory. Until then, PEPE holders may need to brace for continued volatility.