PEPE formed a head-and-shoulders pattern on the daily chart, with a potential 22% drop if the price fails to reclaim the $0.000013 resistance zone soon.
The strong red candle in Pepe [PEPE], the viral memecoin, has triggered a classic bearish reversal structure and traders are now bracing for a potential dump.
PEPE struggles near breakdown zone
The overall cryptocurrency market has been experiencing either sideways or downward momentum. So, the memecoin followed suit and dropped over 7.5% in the past 24 hours, slipping toward the neckline level near $0.000012.
During the same period, trading volume rose by 4.5%, hinting at increased participation, either for hedging or dip-buying.
Source: TradingView
AMBCryptos technical analysis showed PEPE was in a short-term uptrend, but a 20% weekly drop signaled a likely reversal.
On the daily chart, the memecoin appeared to break down from a head-and-shoulders pattern. It was retesting the neckline zone near $0.00001220 at press time.
If PEPE fails to reclaim this level, a 22% move lower toward $0.000009 remains likely.
However, this bearish structure would be invalidated if the coin closes a daily candle above $0.000013, confirming buyer strength and flipping resistance.
As of press time, the Chaikin Money Flow (CMF) held at 0.02, suggesting mild accumulation, but not enough to support a bullish reversal.
Expert views on PEPE memecoin
Crypto analyst VegetaCrypto1 shared on X that PEPE should sweep tomorrow or day after before recoveringimplying a possible fakeout and bounce setup.
Source: X
On-chain data supports bearish bias
Recent investor activity has further strengthened this bearish outlook.
According to CoinGlass, exchanges recorded $1.92 million in net PEPE inflows over the past 24 hours, suggesting that holders are preparing to sell.
Source: CoinGlass
At the same time, derivatives data reveal a clear short bias. Traders have opened $10.85 million in short positions at $0.00001248, nearly double the $5.92 million in longs at $0.00001152.
Together, the inflows and leveraged bets suggest traders and investors expect further downside in the near term.
