The cryptocurrency Pepe has reached an important resistance zone, opening the door for a potential short-term pullback that could confirm bullish trends.
Key Technical Levels
Pepe is currently in a high-time frame resistance zone, focused on significant levels. These levels, including the high-value area and descending trendline, create a technical barrier where price is currently stalling. However, if a pullback occurs, it is expected to be constructive for the broader trend.
Why a Pullback Might Be Beneficial
A short-term pullback to the 0.618 Fibonacci level, which aligns with dynamic support from VWAP, may be seen as healthy and necessary for trend continuation. If the price rotates into this zone and establishes a higher low, it will reinforce the current bullish market structure. It is important to view this potential pullback not as a sign of weakness, but rather as an opportunity to confirm support and strengthen bullish sentiment.
Expectations for Price Action
Should PEPE fail to break above the current resistance, a retest of the 0.618 Fibonacci and VWAP support region is likely. If this area holds and a higher low is formed, the bullish structure remains intact. Traders should monitor for renewed volume as a signal for the next leg higher.
In conclusion, Pepe is in a position where a pullback might confirm support and strengthen bullish trends. The next steps will depend on volume behavior at critical levels.
