The popular memecoin PEPE is facing tough times after falling 13% on Tuesday, signaling more pain might be ahead for short-term holders.
A Rough Day for PEPE Holders
PEPE’s price has been struggling over the past few weeks, but Tuesday’s sharp drop confirms the downtrend is far from over. The coin failed to recover past a major resistance zone and was quickly rejected near the 0.618 Fibonacci level — a key point often watched by traders.
That rejection sparked heavy selling, pushing PEPE to make a new lower low on the daily chart — a classic sign of continued bearish momentum.
Why Traders Are Watching the “Point of Control”
With PEPE now dipping further, the next crucial test is the Point of Control (POC) — a zone known for high trading activity and strong technical importance. This area also lines up with the 0.786 Fibonacci level and a previously tested support zone on the monthly chart.
If PEPE finds support here, we might see a short-term bounce or consolidation. But if it breaks below this zone, things could get worse quickly.
Technical Snapshot
- Trend: Clearly bearish – lower highs and lower lows dominate the chart
- Resistance: Strong rejection from value area highs near the 0.618 Fib level
- Support Ahead: Point of Control (POC) + 0.786 Fib – a must-hold area for bulls
- Volume Profile: Price is rotating back toward areas of higher historical volume
What Could Happen Next?
If buyers show up at the POC and volume supports the bounce, PEPE could stabilize or even attempt a rebound. But if that level fails, traders should prepare for further downside, possibly toward the value area low — another key support level.
The Bottom Line
For now, PEPE remains in a clear downtrend, and short-term price action is heavily bearish. Whether this leads to a deeper crash or a relief rally will depend on how the market reacts at the upcoming support zone.
Investors and traders alike should watch closely. The next few days could be crucial in determining PEPE’s next move.
