PEPE has seen a sharp 13% correction on the daily timeframe, confirming a lower low and continuing its bearish trajectory. With structure still pointing downward, the next major test lies at the point of control, a key level that may either catch the fall or open the door to a deeper drop.
After a series of lower highs and lower lows, PEPE (PEPE) has extended its downtrend with a sharp 13% daily move lower. The recent breakdown followed a failed attempt to reclaim the value area high, where a harsh rejection at the 0.618 Fibonacci level accelerated downside momentum. From a market structure and volume profile perspective, price is now on course for a test of the point of control, a region stacked with confluence that may offer temporary support or trigger another leg down.
Key technical points
- Downtrend Confirmed: A lower low has formed on the daily chart, maintaining bearish market structure.
- Rejection from Value Area High: The move began with a strong rejection at the VAH and 0.618 Fibonacci.
- Next Major Support at Point of Control: POC aligns with a monthly high-timeframe level and the 0.786 Fibonacci retracement — a must-hold zone.
The latest drop comes after PEPE decisively lost a key daily support level, confirming a fresh lower low and continuing its corrective structure. This bearish sequence has been in motion since price failed to sustain above the value area high. A backtest of the 0.618 retracement level led to an immediate rejection and accelerated sell-off.
From a market profile perspective, losing the value area high typically implies a full rotation back to the point of control, and potentially the value area low if support at the POC fails. Price is now approaching this critical level, which carries multiple technical confluences: the 0.786 Fibonacci retracement, monthly high-timeframe support, and a zone of historically high trading volume.
This creates a critical decision point. If demand steps in at the POC and price stabilizes with volume support, a bounce could follow and potentially lead to a bullish structural shift. However, if the POC is lost, the probability of a continued breakdown increases sharply, opening the door for further downside toward the value area low.
What to expect in the coming price action
For now, PEPE remains firmly in a downtrend, with the latest daily losses reinforcing bearish momentum. Watch closely for price behavior at the point of control, if buyers defend this zone, a short-term reversal may occur. If not, increased volatility and an extended correction remain likely.
