PEPE Charts Signal 15% Bounce From Support Amid Market Rebound

$PEPE is recovering from a strong correction as traders anticipate a relief rally in short term.

Analyst Pepe on Fire points to current support as a key point for a possible reversal phase.

Traders now watch the next resistance zone to confirm if $PEPE can sustain upward momentum soon.

$PEPE appears to be regaining strength after a steep decline, signaling a potential recovery phase, according to chart data shared by analyst Pepe on Fire on X. The chart shows a deep correction followed by a steady consolidation pattern, with the analyst suggesting that a bounce from the current support level could confirm a short-term relief rally.

The visual data from TradingView indicates a sharp downward trajectory, followed by signs of stabilization around the lower trading range. This movement hints at growing buyer interest, potentially setting up for a rebound in the coming sessions. The token’s current structure aligns with patterns often seen before minor recoveries in volatile markets.

The analyst emphasized that traders should keep an eye on the next resistance zone, which may determine whether $PEPE sustains its potential recovery or faces renewed selling pressure.

Price Movement Reflects a Classic Correction Cycle

The steep fall shown in the chart reflects a common correction cycle that often follows extended rallies in the meme coin segment. $PEPE experienced a sharp drawdown, losing significant value within a short period. The decline, marked by a distinct downward trendline, represents a swift market reset after heavy profit-taking activity.

As the sell-off slowed, the chart displayed a gradual leveling in momentum. This kind of consolidation generally indicates a temporary pause as both bulls and bears reassess market direction. The pattern reflects reduced volatility after heightened selling pressure, creating a potential foundation for a rebound if demand strengthens.

Historically, similar formations have signaled short-lived relief rallies before broader market realignments. The next few trading sessions will likely confirm whether $PEPE follows this path.

Analyst View: Watching Support and Resistance Levels Closely

According to Pepe on Fire, the key area to watch is the current support zone, which remains intact despite recent declines. The analyst noted that this level could act as a launching point for a relief move, provided volume conditions improve. A break above the first resistance barrier would likely encourage short-term traders to reenter.

The analyst’s perspective aligns with technical readings suggesting momentum divergence, often a precursor to minor recoveries. While the market remains cautious, increasing accumulation around the support band signals renewed interest among holders expecting a price rebound.

As the token stabilizes, attention turns to whether the upcoming resistance level can hold or allow continuation toward higher territory. A confirmed breakout could transform this short-term structure into a more sustained upward channel.

Market Focus: Will Momentum Sustain the Potential Rally?

The main question now facing traders is whether $PEPE’s tentative rebound can maintain strength amid a volatile broader market. Relief rallies typically depend on liquidity influx and trader sentiment rather than fundamental shifts. With investors closely monitoring Bitcoin’s movements, the overall market environment will likely shape $PEPE’s next steps.

Volume spikes and intraday data will be key indicators of the coin’s near-term trend. If buying pressure increases, the asset could regain recent losses swiftly. However, sustained growth may require confirmation above the identified resistance threshold.

This setup positions $PEPE at a critical juncture—balancing between consolidation and the possibility of a short-lived recovery phase.