PEPE has recently pulled back from local resistance after establishing a new higher high in its ongoing bullish trend. Rather than being a sign of weakness, this rejection is a typical development in trending markets—where a higher low often follows to build momentum for the next leg up.
Looking at the 4H timeframe, price action is currently hovering around a key support zone near the value area high, which aligns closely with the 0.618 Fibonacci retracement level. This area is acting as a technical confluence and could serve as the next potential higher low if PEPE can hold above it on multiple 4-hour candle closes.
A sustained hold at this level would likely trigger a rotation back toward the recent resistance, increasing the probability of a breakout and further continuation to higher levels. The current correction should be viewed as a bullish retest, presenting a possible “buy the dip” opportunity within a strong market structure.
From a technical perspective, as long as PEPE maintains support at this zone, the bullish trend remains intact. Momentum indicators continue to lean in favor of the bulls, and volume behavior remains consistent with prior accumulation phases before impulsive moves.
In summary, PEPE is showing signs of healthy consolidation within a bullish framework. The recent rejection is more likely a setup for continuation rather than reversal. If the support zone holds, the market could soon be eyeing a fresh breakout and a test of higher resistance levels in the sessions ahead.