Key Takeaways
Does PEPE have a chance to reverse its strong downtrend?
No, the memecoin sector and PEPE in particular remain bearish on the higher timeframes. However, a minor price bounce may be likely soon.
How high can this bounce go?
Traders can expect a 12%-15% price bounce to the key magnetic zones overhead, as highlighted by the liquidation heatmap.
Pepe [PEPE] has been the worst-performing memecoin among the top 5 in the sector. The meme sector’s woes were not confined to PEPE alone though, as even Dogecoin [DOGE] recorded a 50% decline in 2025.
Source: PEPE/USDT on TradingView
On the 1-day chart, PEPE has remained firmly bearish. The structure, and hence the trend, on this timeframe has been bearish since late September, when the memecoin made a new lower high below $0.00000937.
The moving averages formed a bearish crossover earlier in September, and have stayed steadily bearish in the months since. The CMF also highlighted strong selling pressure recently, but it climbed back into neutral territory. It showed a reading of -0.04 at press time.
The Stochastic RSI formed a bullish crossover. This could lead to a minor price bounce, as the market may be likely overextended to the downside.
On 06 November, a bullish Stochastic RSI crossover was followed by a 12% price rally before PEPE slumped again. It is possible that a similar scenario would unfold once again. In that case, a bounce as high as $0.00000524 can be expected.
Such a bounce would most likely present a selling opportunity, given the trend and overall bearish dominance across the sector.
There is a chance of a PEPE short-squeeze!
Source: CoinGlass
As noted earlier, the prevailing downtrend meant many market participants would be betting on the trend to continue. This meant that short liquidation levels have built up to noticeable levels.
The attached chart highlighted how the cumulative short liquidation leverage was much higher than the long leverage. Combined with the Stochastic crossover and a price bounce, a brief PEPE rally to hunt this liquidity may be likely.
Source: CoinGlass
The liquidation heatmap revealed that the $0.000005-$0.0000055 area was thick with liquidations. This made it the most likely candidate for a bounce. Beyond that, the $0.000006-$0.0000066 area could also be a strong magnetic zone.
Hence, PEPE bears can wait for this bounce to play out before going short or selling.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
