Pepe Coin (PEPE) Shifts Trend—Sell on Rallies Strategy in Play

Pepe coin (PEPE) declined heavily and tested the $0.00000520 support. The price is recovering, gained over 10%, and now faces many hurdles.

Pepe Coin Price Turns Bearish

In the past few days, Pepe coin saw a major decline from well above the $0.0000170 pivot level. The price weakened by over 50%, underperforming majors like DOGE, XRP, Bitcoin, and ETH. There was a clear move below the $0.000010 support zone and the 50-day simple moving average (blue) to enter a bearish zone.

Finally, it tested the key support at $0.00000520. A low was formed at $0.00000528 and the price is attempting a recovery wave. There was a move above the $0.0000060 resistance zone.

Pepe coin price daily chart | Source: PEPE/USD on TradingView.com

PEPE is up over 10% but it is still well below the 50-day simple moving average (blue) and $0.000010. If there is a decent increase, the bears might be active near the $0.0000090 level. It is close to the 23.6% Fib retracement level of the downward move from the $0.0000210 swing high to the $0.00000528 low.

The first key resistance is near the $0.000010 level and the 50-day simple moving average (blue). The main resistance is now forming near the $0.0000105 level.

There is also a major bearish trend line forming with resistance at $0.0000105 on the daily chart. If PEPE clears the $0.0000100 and $0.0000105 resistance levels, it could gain bullish momentum.

In the stated case, the price could rise and test the $0.0000130 resistance. It is near the 50% Fib retracement level of the downward move from the $0.0000210 swing high to the $0.00000528 low. The next resistance is near the $0.0000150 level. Any more gains could set the pace for a steady increase toward the $0.0000172 level.

Sell On Rallies?

If not, Pepe coin could continue to move down. Immediate support is seen near the $0.0000060 level. The first major support is near the $0.00000520 level.

A downside break below the $0.00000520 support might start another major decline. The next key support sits near the $0.0000040 level. Any more losses might call for a test of $0.00000320.

Overall, PEPE price is attempting a recovery wave from the $0.00000520 zone. If the bulls remain active, the price could start a fresh increase. However, the bears might take a strong stand near the $0.000010 and $0.0000105 levels.