PEPE Bounces Near Key Support as TD Sequential Signals Potential Reversal

The PEPE token has recently stalled at a critical support level, drawing attention from traders and analysts monitoring its technical indicators. While the price remains in a consolidation phase, the TD Sequential indicator—a tool historically used to identify local tops and bottoms—has suggested a potential bounce is forming around this key support level. This signal has sparked renewed interest in the asset, as investors weigh the possibility of a short-term reversal in its trend.

According to recent analysis, the TD Sequential has generated a “Buy 9” signal, a technical pattern often associated with the formation of a bullish reversal [3]. This comes as PEPE trades above the $0.00001 threshold, a level seen as significant for its near-term direction [3]. The indicator’s signal could indicate that sellers have exhausted their pressure at this level and that buyers may soon regain control, pushing the price upward.

Despite the indicator's positive signal, market participants are cautious. The price's inability to break decisively higher has left traders scrutinizing whether this bounce is a genuine reversal or just a temporary respite in a broader downtrend. Historical behavior of similar assets, such as ADA and AAVE, shows that TD Sequential signals can sometimes precede sharp pullbacks if not confirmed by follow-through buying [1]. Therefore, traders are watching closely for additional price action that could validate or invalidate the current setup.

The consolidation around the support level also highlights the ongoing battle between buyers and sellers in the market. Traders are particularly focused on whether PEPE can retest the $0.00001–$0.0000095 range without breaking below it. A sustained move above this range could signal a stronger bullish case, while a break below might invite further selling pressure. Analysts emphasize the importance of volume and follow-through in confirming the TD Sequential signal [3].

Veteran trader Matthew Dixon noted that PEPE reversed sharply in mid-July after a bearish divergence between price and the Relative Strength Index. He explained that this signaled fading momentum. Dixon outlined two scenarios: either PEPE is finishing an ABC corrective pattern or it is in a 1-2-3 bearish impulse that could extend [3].

For now, PEPE sits within a tight support band between $0.00001 and $0.0000095. A break below this range could accelerate losses toward $0.00000880 or even $0.00000820. On the upside, a breakout above $0.0000125 could open the door for targets near $0.0000138 and $0.000015 [3].

PEPE’s RSI has recently recovered from oversold levels near 30, now resting around 42. While this suggests some short-term relief, no bullish divergence has formed yet, meaning any rebound may remain short-lived unless fresh signals appear [3].

As the market digests this information, the focus remains on the interplay between technical indicators and price action. While the TD Sequential offers a potential roadmap for a bounce, it is not a guarantee of success. Investors are advised to remain vigilant and use additional tools, such as volume analysis and support/resistance levels, to make informed decisions.

Source: [1] ADA Price Rally in Danger? Cardano Flashes Sell Signal as Analyst Warns of Sharp Drop (https://captainaltcoin.com/ada-price-rally-in-danger-cardano-flashes-sell-signal-as-analyst-warns-of-sharp-drop/)

[2] AAVE Indicator Says 'Buy,' But the Chart Tells a Different Story (https://captainaltcoin.com/aave-indicator-says-buy-but-the-chart-tells-a-different-story/)

[3] PEPE Price Stalls at Key Support While TD Sequential Signals a Bounce (https://blockonomi.com/pepe-price-stalls-at-key-support-while-td-sequential-signals-a-bounce/)