PEPE Price Bounces 7% After Testing Support Levels

PEPE price has shown signs of recovery after a steep drop earlier in the week, stabilizing near the $0.00001140 zone. The token bounced nearly 7% intraday on June 6 after testing the lower boundary of a confluence support cluster near $0.00001050. This area aligns with the 4-hour lower Bollinger Band and trendline support that connects the recent May lows. The token is now consolidating within a narrowing symmetrical triangle pattern, with sellers defending the $0.00001180–$0.00001220 range, which acted as a key breakdown zone earlier this week.

On the daily timeframe, PEPE price action is showing a classic structure of lower highs and higher lows, forming a squeeze setup. This structure suggests that the current consolidation is likely to resolve in the coming sessions with a directional move. However, bulls must reclaim the $0.00001283 resistance for any meaningful upside continuation.

The technical reversal emerging from oversold zones is a key factor in the recent price increase. On the 30-minute chart, the RSI surged from 38 to above 70, signaling strong momentum re-entry. The MACD flipped bullish with a clear crossover, while histogram bars turned green after days of red prints, indicating bullish divergence in play. The Ichimoku Cloud also reflects early optimism, with PEPE now trading near the lower edge of the cloud, and the Tenkan-sen and Kijun-sen exhibiting a bullish twist. If this recovery sustains through the next few sessions, PEPE may attempt to re-enter the cloud, confirming a short-term reversal signal.

Despite the bounce, PEPE price remains trapped beneath a declining trendline that has consistently capped rallies since late May. Sellers are likely to defend the area between $0.00001180 and $0.00001280, where both horizontal resistance and the 20/50 EMA cluster converge on the 4-hour timeframe. If the price fails to flip this zone into support, the risk of another rejection toward the $0.00001062 and $0.00000915 support layers will increase. These levels represent prior consolidation zones and psychological demand regions, especially important in maintaining the mid-term bullish bias.

The 4-hour Bollinger Bands are beginning to widen again after a narrow squeeze, signaling increased PEPE price volatility ahead. Meanwhile, PEPE has reclaimed the mid-Bollinger line near $0.00001185, a move that often precedes upper-band tests—provided volume supports continuation. RSI on the 30-minute and 1-hour charts is tilting above 70, indicating possible overheating in the short term. However, Stochastic RSI is also flashing overbought conditions, suggesting a minor cooldown or consolidation phase may occur before bulls attempt to push further.

On the weekly chart, the 0.618 Fibonacci retracement near $0.00001120 continues to act as a pivot. Closing above this level is critical for maintaining bullish structure into mid-June. While the rebound from $0.00001052 reflects growing buyer interest at key supports, confirmation will only arrive if PEPE price can hold above $0.00001180 and push toward the triangle apex near $0.00001283. A breakout above this region could initiate a measured move toward $0.00001388 or even $0.00001500, especially if broader meme coin sentiment turns favorable. However, failure to maintain levels above $0.00001140 could reintroduce downside risk toward the $0.00001000 mark, where prior accumulation occurred. Overall, the trend remains neutral-to-bullish with a breakout bias as long as bulls defend the 0.618 Fib zone.