Is $PEPE About to Break Its December Low – Or Is This the Ultimate Bear Trap?
PEPE is once again at a critical crossroads, and opinions are sharply divided. While some traders believe the worst is already priced in, technical signals suggest the downtrend may not be over yet. After being firmly rejected at the short-term descending resistance — drawn from the December 9 and December 22 highs on the 4-hour logarithmic chart — PEPE failed to reclaim the key $0.00000400 level, triggering renewed selling pressure.
At the time of writing, PEPE is down nearly 2%, continuing its corrective structure. The nearest downside target lies at the December 18 low around $0.00000363, which aligns perfectly with Pivot S1 at $0.00000364 — a crucial support zone. A decisive breakdown below this area could accelerate losses toward Pivot S2 at $0.00000326, opening the door to a deeper liquidity sweep.
Momentum indicators reinforce the bearish narrative. The RSI (4H) has slipped to 39 and continues trending toward oversold territory, signaling growing sell-side dominance after failing at the neutral zone. Meanwhile, the MACD remains below its signal line with a declining histogram, confirming that bearish momentum is still in control.
On the flip side, bulls are not out of the game — yet. A strong breakout and 4H close above $0.00000400 would invalidate the descending resistance and shift short-term bias bullish, potentially driving price toward Pivot R1 at $0.00000439.
Trade Setup (Short-Term):
🔻 Sell Entry: 0.00000395 – 0.00000405
🎯 TP1: 0.00000364
🎯 TP2: 0.00000326
❌ SL: 0.00000425
🔺 Buy Entry (Confirmation Only): 4H close above 0.00000400
🎯 TP: 0.00000439
❌ SL: 0.00000378
Is PEPE heading for a deeper crash — or preparing for a violent rebound?
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