The post Pepe eyes higher low formation after local rejection — is a 35% rally on the table? appeared on BitcoinEthereumNews.com.

Pepe is encountering resistance, but this rejection could mark the beginning of a bullish continuation setup. Traders are watching for a potential higher low that may set the stage for a strong rotation to the upside. Pepe price action (PEPE) is currently facing a local resistance zone, one that is not necessarily bearish in nature but could act as a springboard for a bullish continuation. The region being tested aligns with the 0.618 Fibonacci retracement and the value area high from the local range, making it a strong candidate for a healthy rejection. Rather than expecting a sharp reversal, this scenario points to a potential retrace that would form a higher low — a classic bullish continuation signal if confirmed by follow-through. Key points Pepe is testing a local resistance area around the 0.618 Fib and value area high. A rejection could lead to a sweep of swing low liquidity near the point of control. Bullish structure remains intact if a higher low forms and price reclaims support. Pepe USDT Lower Time-frame Chart (4H) | Source: TradingView Should this rejection play out, price action is expected to rotate down toward the point of control region, which also aligns with the VWAP support level, creating strong technical confluence. Liquidity has been building beneath the current range since last Wednesday, and a sweep of that liquidity would be in line with a swing failure pattern (SFP). If price takes out that swing low but quickly closes back above it, this would confirm a higher low structure on the local timeframe — a strong bullish signal that sets the stage for a rally toward the recent swing high. Such a move could result in a 35% upside push, provided broader market conditions remain favorable. It’s worth emphasizing that this pattern relies heavily on…

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Filed under: News - @ April 22, 2025 1:15 am