The Pepe memecoin rallied 16% from its previous Monday lows, buoyed by a broader cryptocurrency market surge. While short-term momentum is strong, technical analysis suggests PEPE remains within a longer-term bearish structure. Traders are cautioned against immediate entry as the asset approaches a key resistance zone.
The Pepe memecoin showed a notable recovery, gaining 16% from its local lows the previous Monday, March 9. This bullish momentum aligned with a market-wide shift recently led by Bitcoin. The memecoin sector was not the strongest performer overall, but many popular coins registered significant gains in recent days.
Bitcoin maintained a position above $70,000 over the weekend. Ethereum bulls successfully broke the $2,150 local resistance level, aiming to extend the rally further. This short-term impetus provided a boost for Pepe traders.
On the one-day chart, the swing structure for PEPE remained bearish. The current rally was identified as a retracement within that longer-term downtrend. At the time of writing, the memecoin was testing a local supply zone between $0.0000036 and $0.0000038.
The Relative Strength Index moved above the neutral 50 level, indicating a potential trend shift. The On-Balance Volume also reached a new high for March, highlighting substantial buying volume. Analysts noted the coin could rally another 10%-25% to test overhead retracement levels in coming weeks.
On the two-hour chart, the RSI was deep in overbought territory as PEPE neared a short-term bullish target. Traders should be prepared for a retracement from this resistance level. A pullback could reach as low as $0.0000034-$0.0000035, though the depth remained unclear.
Bitcoin’s strong momentum might help bulls flip the local resistance into support. Traders can wait for further developments. Those already in long positions could consider taking profits, potentially using a dip toward $0.0000035 as a new entry point.
