PEPE Coin Price Shows a Shift in Market Structure Indicating Bullish Potential

The price of PEPE coin is showing early signs of a reversal after a series of bullish engulfing candles and increased trading volume have reclaimed important support levels, enhancing the likelihood of a move towards higher resistance points.

Key Takeaways

PEPE coin price is experiencing a potential shift in market structure following strong bullish signals.
Bullish engulfing candles, along with rising volume, suggest buyers are returning with confidence.
The current price action indicates a promising retest of support, which could lead to a significant rally.
If the support is maintained, PEPE could reach a target of approximately 187% upside from its current levels.

PEPE Coin Price Flips Structure, Suggesting Bullish Rally Ahead

Analyzing the PEPE Coin Price Movement

PEPE Chart Analysis
PEPE/USDT (1D) Chart, Source: TradingView

The appearance of bullish engulfing candles often signals a shift in market momentum, especially after prolonged bearish trends. In the case of PEPE, this bullish engulfing pattern emerged strongly, indicating a potential change in short-term behavior among traders.

This movement is significant as it reveals that sellers may be losing dominance, while buyers are showing a readiness to engage at higher price levels. When an asset moves from resistance zones and begins to stabilize above them, it typically indicates an ongoing shift in market structure.

Notably, PEPE's upward movement has been rapid and direct. This impulsive action suggests a genuine demand-driven trend rather than a mere temporary rebound due to lower liquidity.

The Importance of Retests and Support in Market Trends

Following the recent explosive breakout, PEPE is now in a retest phase, where areas previously viewed as resistance are being tested as new support. This phase is critical for any potential reversal.

If the retest is successful, it would confirm that buyers are ready to defend this new support area, signaling market acceptance of elevated prices and reducing the likelihood of an immediate return to a bearish trend.

As long as PEPE maintains its closing prices above this newly established support zone, the overall market structure remains positively skewed. If it fails to hold this level, it may indicate that the upward move was merely temporary.

Conversely, should the price secure a higher low during this phase, it would further bolster the bullish sentiment and create a solid basis for continued upward momentum.

Targeting Potential Upsides

If the support maintains, PEPE’s next significant target is at the high-time-frame resistance near the upper value area. This level represents the next cap on the chart and would be a major liquidity target if bullish momentum persists.

Achieving this target would imply a possible rally of around 187% from current price levels based on estimated range expansion. While such a surge may take time, the underlying structure supports this optimistic outlook if the bullish trend continues with sustained volume.

Reclaiming the upper value area would serve as a profound affirmation that the previous bearish trend has been overcome, indicating a shift toward a more durable recovery phase.

Conditions for a Full Market Structure Reversal

For a complete reversal in market structure, PEPE must establish both a higher low and ultimately a higher high. The recent bullish engulfing movement marks the first step in this progression, while the retest phase will be crucial in determining whether the new structure can hold.

If the price can maintain support and continue to build bullish momentum, the likelihood increases that PEPE can break past overhead resistance and fully transition into a new trend cycle.

Volume plays a critical role in this scenario. A larger rally is likely if trading volume remains high and bolsters continuation rather than diminishing during consolidation periods.

What Lies Ahead for PEPE's Price Action

In the short term, PEPE will aim to hold the newly reclaimed support post its bullish engulfing breakout. As long as prices close above this support area and volume supports ongoing activity, the chances of advancing towards the upper value area resistance grow stronger.