Pepe price hovers near key support after a sharp drop. Traders watch for a bounce or deeper slide as RSI and TD Sequential signal caution.
Pepe’s price action is hanging on a knife-edge. After weeks of selling, traders are watching a critical support zone. A sharp reversal followed a bearish divergence between price and RSI in mid-July.
Momentum has stalled, and the next move depends on whether a short-term bounce holds or breaks. The market’s uncertainty has left investors cautious but alert for a decisive shift.
Pepe Bearish Setup Takes Shape
Veteran trader Matthew Dixon noted that Pepe’s price made a higher high in mid-July while RSI posted a lower high.
This divergence triggered a strong downward move, confirming weakening momentum. According to Dixon, the market now sits in an ABC or 1-2-3 correction phase.
If it’s an ABC zig-zag, Pepe could stage a short-term bounce before facing resistance. However, if a 1-2-3 impulse unfolds, further downside may follow. The difference between the two scenarios remains critical for short-term traders.
Key PEPE Price Levels to Watch
Pepe is currently trading at $0.00001011, down 5% in 24 hours and 11% over the past week, per CoinGecko data. Dixon highlighted a support range between $0.00001 and $0.0000095. A break below this could accelerate losses toward $0.00000880 or even $0.00000820.
Resistance sits at $0.0000115 to $0.000012. A clean move above $0.0000125 may signal that the correction has ended, opening the way toward $0.0000138 and $0.000015.
Oversold Conditions Spark Cautious Hope
The RSI recently bounced from oversold levels at 30 and now sits near 42. No bullish divergence has formed yet, suggesting any recovery may remain corrective for now.
Meanwhile, analyst Ali pointed to a TD Sequential buy signal on Pepe’s daily chart.
$PEPE could be gearing up for a rebound as the TD Sequential flashes a buy signal on the daily chart! pic.twitter.com/SaCRD55wyw
— Ali (@ali_charts) August 5, 2025
This indicator, known for spotting trend reversals, hints that a short-term rebound may be in play. Traders remain cautious but alert for a possible retest of $0.0000115 before Pepe decides its next major move.
