PEPE's Potential Reaccumulation Pattern After a 27.5% Weekly Drop: A Technical Analysis and Strategic Entry Guide

Introduction

The PEPE token, a memecoin with no intrinsic utility, has faced a 27.5% weekly price drop in early October 2025, bringing its value to $0.000007Pepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1]. This sharp correction, part of a broader market pullback in the memecoin sectorPEPE Coin's Bullish Surge: Whale Accumulation and Key ...^[3], has sparked debates about whether the decline signals a bearish reversal or a reaccumulation phase. Technical analysis and on-chain data suggest a complex interplay of bearish exhaustion and potential bullish setup, making strategic entry timing critical for investors.

Technical Analysis: Bearish Exhaustion and Oversold Conditions

PEPE's price has been trading below its key moving averages (MA-20, MA-50, and MA-200), reflecting sustained seller pressurePEPE Coin's Bullish Surge: Whale Accumulation and Key ...^[3]. However, the Relative Strength Index (RSI) has dipped to 34.80, indicating an oversold conditionPEPE Coin's Bullish Surge: Whale Accumulation and Key ...^[3], while the Stochastic RSI remains neutral. This divergence between price action and momentum indicators often precedes reversals.

Fibonacci retracement levels further highlight critical junctures. The 0.5 retracement level at $0.000018136 and the Value Area Low (VAL) have acted as crucial supportsPepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1]. A breakdown below these levels could trigger a deeper decline toward $0.0000032Pepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1], but a higher low formation might validate a double-bottom pattern, signaling a bullish reversalPepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1].

Reaccumulation Pattern: Consolidation and Whale Accumulation

Post-October 2025, PEPE has consolidated between $0.00000720 and $0.00000740, with on-chain data revealing increased whale accumulationPEPE Coin's Bullish Surge: Whale Accumulation and Key ...^[3]. Large investors have been buying during dips, suggesting long-term confidence in the token's speculative narrativePEPE Coin's Bullish Surge: Whale Accumulation and Key ...^[3]. This accumulation coincides with a potential reaccumulation pattern under a descending triangle, where price action forms a rounded basePepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1].

The descending triangle breakout on September 29 initiated a bullish cycle, peaking at $0.000025 on November 14PEPE Breaks Out, Testing Former Resistance as Support^[4]. If PEPE sustains above $0.00000720, it could retest the 0.618 Fibonacci extension at $0.000028983PEPE Targets Breakout as Price Hits Key Resistance^[2], a level critical for confirming a Wave 5 continuation in Elliott Wave analysisPEPE Targets Breakout as Price Hits Key Resistance^[2].

Strategic Entry Levels and Risk Management

For traders considering entry, key support zones at $0.00000720 and $0.00000716Pepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1] offer high-probability buy opportunities if the price holds. Immediate resistance lies at $0.00000737PEPE Coin's Bullish Surge: Whale Accumulation and Key ...^[3], with a successful breakout potentially unlocking targets at $0.00000740 and beyond.

A 28% gain from current levels is possible if PEPE breaks above $0.00000732, aligning with previous swing highsPepe Price Prediction: Is Breaking Resistance Leading to a New All ...^[5]. However, risks remain: a breakdown below $0.00000698PEPE Coin's Bullish Surge: Whale Accumulation and Key ...^[3] could invalidate the bullish case, forcing the price toward $0.0000032Pepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1]. Position sizing and stop-loss placement near $0.00000698 are essential to mitigate downside risk.

Market Sentiment and Broader Implications

Despite PEPE's technical setup, the broader crypto Fear & Greed index at 64 (Greed) indicates optimismPepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1], which could fuel retail-driven rallies. However, PEPE's reliance on virality and social media trends makes it highly volatilePepe Coin Dropped -37.63% in Last Month and is Predicted to ...^[1]. A 796% rally by year-end, as suggested by some Fibonacci extensionsPEPE Coin's Bullish Surge: Whale Accumulation and Key ...^[3], hinges on sustained retail participation and meme coin relevance.

Conclusion

PEPE's post-27.5% drop reaccumulation pattern presents a high-risk, high-reward scenario. Technical indicators suggest a potential bullish reversal if key supports hold and the RSI remains elevatedPEPE Breaks Out, Testing Former Resistance as Support^[4]. Whale accumulation and Fibonacci targets offer a roadmap for strategic entries, but investors must remain cautious of the token's speculative nature. As the market tests $0.00000720, the coming weeks will be pivotal in determining whether PEPE transitions from bearish exhaustion to a new bullish cycle.