After last week’s dramatic volatility shook the cryptocurrency market, Ethereum (ETH) is rebounding. This positive movement has brought memecoins back into the green zone, with Pepe (PEPE) currently stabilizing at a crucial support level. 📈
While gains are modest today, PEPE’s recent price action suggests a major shift could be on its way if current support holds firm.
A Descending Channel Suggests Potential Reversal
The daily chart shows PEPE in a descending channel — a classic bullish reversal pattern often seen during extended corrective phases. Such structures typically signal a move toward an upward trend as volatility reduces. 📉
Recent decline has brought the price down towards the channel’s lower boundary around $0.0000040, which has repeatedly acted as a strong demand zone. This region has held once again, triggering a small rebound.
Pepe’s Past Performance
Interestingly, last time PEPE reclaimed the 50-day moving average (50 MA) after stabilizing near its lower channel support — back in July — it rallied by a staggering 72%. Today’s setup shows PEPE trading just below both the descending trendline and the 50 MA. If buyers confirm this strength, it could spark another significant surge.
What’s Next for PEPE?
If PEPE successfully maintains support above $0.0000040 and breaks through the descending trendline, a reclaim of the 50 MA at $0.00000560 could act as a catalyst for renewed bullish momentum. In this scenario, PEPE could soar towards the upper channel resistance around $0.00000850, setting the stage for a possible breakout. However, if bears regain control and price dips below the $0.0000040 support zone, the structure may be invalidated.
A breakdown could indicate further declines into early 2026, signaling continuation of the broader downtrend.
Traders will closely watch the interaction with the channel boundaries and moving averages — as the next move from here could determine PEPE’s short-term direction.