PEPE Cryptocurrency Pulls Back 10% After Hitting Key Resistance

PEPE, a cryptocurrency, has recently experienced a pullback after hitting a key resistance level, leading to a temporary cooling off in its price action. Despite this, the overall trend remains bullish, with technical indicators and market structure suggesting strength. The current dip is seen as a potential higher low in a healthy market structure, with several factors pointing towards another upward movement.

Key support zones are currently being tested, aligning with the 0.618 Fibonacci retracement and the Volume Weighted Average Price (VWAP), creating a strong bullish confluence. The market structure continues to show higher highs and higher lows, defining the uptrend. The recent pullback is viewed as a constructive retest rather than a reversal.

Volume profile insights indicate that a recent volume climax may signal a local top, but for PEPE to continue its upward trajectory and break above resistance, fresh volume influx is required. The current support zone, defined by the value area high, the 0.618 Fibonacci level, and the VWAP, is acting as a dynamic support zone where bulls can defend and re-establish momentum.

From a structural standpoint, PEPE is maintaining a clear pattern of higher highs and higher lows. The recent correction does not invalidate the bullish trend but instead provides a reset within it. As long as the higher low structure remains intact and the price closes above the current support zone on the 4-hour chart, further upside looks increasingly probable.

Volume plays a pivotal role in this scenario. While a recent volume climax hinted at short-term exhaustion, it does not signal a long-term reversal. Instead, it marks a local top. For PEPE to push higher and breach the current resistance, buyers will need to step in with conviction, marked by increased and sustained volume levels.

Looking ahead, if PEPE holds this key support zone, a move back toward local resistance becomes likely. A successful breakout, backed by volume, could trigger an expansion phase and new highs. Until the bullish structure is invalidated, dips like this continue to offer potential buying opportunities.