$PEPE is entering a pivotal phase as it approaches key support levels that could shape its future price trajectory. Following a recent rejection at higher resistance levels, market sentiment is currently mixed, with investors closely watching the $0.00001932 and $0.00001152 price zones. These levels could either act as a springboard for a recovery or pave the way for a deeper correction.

Current market volatility

After hitting a new record high of $0.00002524, PEPE has faced a sharp pullback. The price has dropped more than 6%, currently trading at around $0.00002115. This drop highlights a change in dynamics as sellers dominate the market.

The immediate focus is on the support level at $0.00001932. If this level holds, it could signal a recovery. However, a break below this support level could accelerate losses, potentially dragging the price down to $0.00001503 or even the next important zone at $0.00001152.

Key Technical Indicators

1. Relative Strength Index (RSI)

  • 4-hour RSI: The RSI has declined from overbought levels at a low of 80 to a low of 60. This shows that buying pressure is easing and is likely to shift to bearish control in the short term.

  • Daily RSI: Although still near overbought levels, it suggests that buyers’ strength is waning. If it falls further, it could prompt a consolidation phase or deeper correction.

2. 100-day simple moving average (SMA)

The 100-day SMA is currently acting as dynamic support. If the price stays above this average, it could form the basis for a recovery. Conversely, a drop below this line could signal a continuation of the downtrend.

3. Volume Trend

Trading volume has decreased slightly, reflecting caution among traders. An increase in volume will be important to confirm any breakout or breakdown from current levels.

Scenarios to watch

1. Resilience

If PEPE holds the $0.00001932 support level, it could spark fresh buying interest. In this scenario, the token could rally to challenge the $0.00002409 resistance level. A break above this level could set the stage for another attempt to reach an all-time high.

2. Deeper Repair

A breakdown below $0.00001932 could trigger significant selling pressure. In this case, the next support levels to watch would be $0.00001503 and $0.00001152. Failure to hold these levels could lead to an extended bearish phase.

Market sentiment and upcoming catalysts

Investor sentiment is a mix of caution and anticipation. The overall market trend remains important, but internal developments within the PEPE ecosystem could change the narrative.

One of the most anticipated events is the upcoming launch of Pepe Unchained (PEPU), a new project that aims to expand the utility and ecosystem of PEPE. This event has created a buzz and could act as a catalyst for a new price surge.

However, unless there is significant buying activity accompanying the launch, the token may find it difficult to sustain higher levels in the face of greater bearish pressure.

Conclusion

PEPE is at a crossroads. Key support levels such as $0.00001932 and $0.00001503 will be crucial in determining the token’s next move. Traders and investors should keep a close eye on these levels, along with technical indicators such as RSI and SMA.

While the launch of Pepe Unchained adds an element of excitement, caution is still warranted, as market conditions can change rapidly. For those with a short-term trading focus, the volatility presents both opportunities and risks. On the other hand, long-term holders may view current levels as a potential accumulation zone, depending on their risk appetite and confidence in PEPE’s long-term prospects.