- Pepe (PEPE) shows signs of a potential trend reversal as bearish divergence appears on momentum indicators and short positions hit a monthly high.
- If the price fails to hold above $0.000013, it could decline toward key support levels at $0.000012 and $0.000011.
The frog-themed memecoin Pepe (PEPE) is showing signs of bullish exhaustion, trading around $0.000013 on Tuesday after a sharp rejection from the $0.000016 resistance level last week. Technical indicators are flashing warning signs, hinting at a potential trend reversal.
On the daily chart, PEPE has formed a higher high in price, but the Relative Strength Index (RSI) failed to confirm this move, forming a lower high instead. This divergence between price and momentum—known as bearish divergence—often precedes pullbacks or trend changes. Adding to the concern, the Moving Average Convergence Divergence (MACD) indicator flipped bearish over the weekend with a crossover, signaling a possible correction ahead.
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On-chain metrics support this cautious outlook. According to Coinglass, the long-to-short ratio for PEPE stands at 0.86, indicating that bearish bets have surged to their highest level in over a month. A ratio below 1 shows that more traders are shorting the coin than going long, reinforcing the sentiment that PEPE may be headed lower.
From a technical standpoint, PEPE has already dropped over 12% from Friday’s highs and is currently attempting to stabilize at $0.000013. However, if the bearish momentum persists, the next level of support lies at $0.000012. A breakdown below this mark could open the door to $0.000011, which aligns with the 50-day Exponential Moving Average (EMA).
Investors sitting on the sidelines may see the current price level as a potential short entry point, especially if macro sentiment in the meme coin sector weakens further. Still, bulls aren’t entirely out of the picture. A decisive daily close above the $0.000016 resistance would invalidate the bearish thesis and potentially reignite upward momentum.
For now, all eyes remain on PEPE’s ability—or failure—to hold above its key support, as bearish indicators continue to dominate the meme coin’s outlook.