PEPE is closing in on a pivotal moment as it tests the $0.00001152 level, a critical crossroads that could shape its next direction. A break above this key resistance could trigger further bullish momentum, sending the price higher. However, failing to exceed this level could result in rejection, potentially pushing the meme coin into a retracement phase.
As traders focus on this crucial resistance, this analysis will explore the likelihood of a breakout from a potential rejection by analyzing the current price action of PEPE as it approaches the critical resistance level of $0.00001152. Key technical indicators, market sentiment and trade volume will be examined to provide a clearer view of its next move.
Current PEPE price action
Currently, despite trading above the 100-day simple moving average (SMA), PEPE price on the 4-hour chart is showing signs of a potential rejection. After reaching the key resistance level of $0.00001152, the price started to decline, signaling that the positive movement could weaken and a deeper retracement could occur if the coin fails to quickly regain its upward momentum.
Additionally, the Relative Strength Index (RSI) fell to 82% after peaking at 88%, indicating a cooling in buying pressure. Although the RSI remains in overbought territory, this decline suggests that the bullish momentum may be fading. Such a decline typically signals that the asset could be entering a consolidation phase or experiencing a potential price retracement, especially if the asset is struggling to break through key resistance levels.
On the daily chart, the crypto asset showed a strong upward movement with the formation of several bullish candlesticks after surpassing the 100-day SMA. However, the current candlestick reveals a rejection wick, signaling increasing selling pressure. If this rejection persists, it may indicate weakening bullish strength, potentially leading to a deeper consolidation or retracement as traders take profits.
Finally, on the daily chart, the RSI has risen above 50% and now sits at 75%, reflecting strong optimistic sentiment and dominant buying pressure. While this suggests continued price growth, the proximity to overbought territory raises the possibility of a pullback if buying falters. A further rise could strengthen the uptrend, but a decline could indicate an upcoming correction or consolidation.
Market Sentiment is Divided: What’s Next for Meme Coin?
The recent PEPE price action has left the walk divided, with traders speculating between optimism about a breakout and caution about a potential rejection. If the meme coin is rejected, it could start to move back towards the $0.00000766 level and potentially lower support levels.
However, a successful break above the $0.00001152 resistance level could indicate increased buying momentum, possibly paving the way for further gains and targeting higher resistance levels, such as $0.00001731 and beyond.
Featured image from iStock, chart from Tradingview.com
