- The Pepe price prediction was bullish in the short-term after the move beyond local resistance,
- The price dip of 8.9% in the past 16 hours represented a retest of a key demand zone and a buying opportunity.
Pepe [PEPE] regained a short-term bullish bias after it gained 8.1% on Tuesday, the 31st of December. The move occurred on heightened trading volume, increasing the chances that it was a genuine bullish signal.
Since November, the memecoin appeared to be forming a cup-and-handle pattern. The handle formation saw a deeper dip than usual, which could hurt the bullish projections of the coming weeks.
In either case, the defense of the 50% retracement level for the second time in two months was another bullish signal.
PEPE price prediction — Bullish efforts underway once again
Source: PEPE/USDT on TradingView
The 50% retracement level at $0.00001711 was defended over the past two weeks. Moreover, a bullish structure break was spotted on Tuesday during a move that reached as high as $0.00002185.
The trading volume was not subdued, unlike the preceding two weeks, showing additional bullish intent. The OBV has been pushing higher in the second half of December to reflect increased buying pressure.
The RSI was at neutral 50 and signaled a momentum shift on the daily chart was close by.
Trade setup based on the lower timeframes
Source: PEPE/USDT on TradingView
The 4-hour chart showed that the $0.000019 region was a bullish breaker block that was expected to serve as a support zone during a retest. To the north, the next strong resistance area was at $0.000023.
This area formed the bearish order block during PEPE’s downtrend earlier this month.
Read Pepe’s [PEPE] Price Prediction 2025-26
The H4 chart showcased the short-term range formation between $0.00001725 and $0.0000196 levels, which was breached on Tuesday.
Lower timeframe traders can look to buy at $0.0000184-$0.0000189, targeting $0.0000228.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion