PEPE adjusts after an 80% surge: Important price levels to watch

As of the time of writing, Pepe (PEPE) has experienced a 0.66% decrease over the past 24 hours, after undergoing a short-term volatile spike. In less than an hour, the price of PEPE plummeted 2.33%, sweeping through the weekend lows at the 0.00000588 USD mark.

Nevertheless, this popular memecoin started the new year with an impressive breakout. From January 1 to January 4, PEPE surged by 80.15%, before facing profit-taking pressure and correcting downward by 18.32% in subsequent sessions.

According to analysis from Coin Photon, the entire memecoin segment saw strong growth momentum in the first trading week of the year, as capital quickly returned to the market and focused on leading tokens. However, this enthusiasm has begun to cool off since January 5.

In the past 7 days, PEPE has lost 15.27% of its value, Dogecoin (DOGE) decreased by 7.25%, while Bitcoin (BTC) mostly moved sideways within an accumulation zone around the psychological level of 90,000 USD, with only a slight correction of 1.02%.

PEPE Bulls Unable to Break Through November Supply Zone

Source: TradingViewIn late October to early November, the price range of 0.0000062–0.0000072 USD served as a short-term resistance for PEPE. The strong breakout on Sunday (4/1) helped this memecoin surpass the above supply zone, but the bulls failed to maintain the gained advantage.

After the failed breakout, PEPE quickly reversed and fell back below the key short-term support zone. Notably, the 0.0000062 USD level has now “turned into” a resistance zone, requiring significant effort from the bulls to regain market control.

However, on the daily timeframe, the market structure still leans toward an uptrend. The A/D indicator shows a clear increase in buying volume in early January, while the Awesome Oscillator continues to reflect that the bullish momentum remains dominant.

Unlikely Scenario

Based on the strong capital inflow in early January, the scenario of PEPE sharply correcting back to the demand zone of 0.0000044–0.0000050 USD is considered unlikely. Meanwhile, Bitcoin has recovered firmly above 91,000 USD and is currently approaching and testing the short-term resistance zone around 92,500 USD.

If BTC convincingly breaks through key levels at 92,500 USD and further at 94,500 USD, the positive trend is likely to spread, serving as a driving force to support the entire memecoin group.

Action for Traders: Wait for Confirmation Signals

Source: TradingViewAlthough the trend structure on the daily timeframe still leans bullish, on the 1-hour timeframe, the market is currently under downward pressure. The 0.0000060 USD zone acts as a notable local supply area, while above there are several other supply zones formed from previous swing highs on the same timeframe.

In this context, traders may consider waiting for the price to correct to the 0.0000044–0.0000050 USD zone to find a suitable entry point, or adopt a trend-following strategy when the price decisively breaks above 0.0000072 USD. Currently, patience remains a key factor for traders pursuing short-term strategies.

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