- PEPE forms a rounded bottom, signaling a possible trend reversal and bullish move.
- MACD crossover and RSI at 61 suggest rising momentum with room to grow higher.
- Increased net inflows above $50M may fuel bullish sentiment and upward price pressure.
Pepe (PEPE), the popular meme coin, is showing signs of a potential reversal following weeks of selling pressure. As of May19, PEPE is trading at $0.00001291, marking a modest 1.09% gain over the last 24 hours.
Despite a 10.22% drop over the past week, technical indicators and price patterns are pointing toward a possible breakout. A combination of chart formations, market sentiment, and volume flows suggest that PEPE may be gearing up for a significant bullish move, provided key support levels hold.
Rounded Bottom Formation Signals Recovery
According to the latest analysis from Rose Premium Signals, PEPE is currently forming a rounded bottom on the weekly chart. This formation typically appears after a prolonged correction and often leads to trend reversals. The price is now testing a critical resistance zone. A clean break above this level, followed by a successful retest, could fuel strong upward momentum.
Rose Premium Signals highlights two major targets in the short term. If bullish momentum sustains, the price could reach $0.00001872 as the first target, followed by $0.00002745. An ideal entry point for long positions may be around the 0.618 Fibonacci retracement level at approximately $0.00000941. This level would act as a crucial support zone if the price pulls back before rallying.
#PEPE/USDT Weekly Analysis 🐸$PEPE is forming a rounded bottom pattern after a major correction, signaling a strong potential reversal ahead 📈
— Rose Premium Signals 🌹 (@VipRoseTr) May 18, 2025
Price is currently testing a crucial resistance zone. If it breaks and retests successfully, the bullish momentum could target:
🎯… pic.twitter.com/HGHOKP3kAE
Indicators Show Upward Pressure
Besides chart patterns, several key technical indicators are aligning with the bullish outlook. The MACD is showing a positive crossover. The MACD line sits slightly above the signal line, suggesting rising momentum. Moreover, the histogram remains slightly positive, reinforcing the bullish sentiment.
Meanwhile, the Relative Strength Index (RSI) is currently at 61.24. While it reflects growing buying pressure, it’s still below the overbought threshold of 70. This gives PEPE room for additional upward movement before a potential pullback occurs.
On-Chain Activity and Market Flows
While the broader chart shows selling pressure since mid-December, recent inflow spikes suggest renewed interest. A noticeable spike in early May could mark the start of a trend reversal. PEPE’s price often reacts strongly to significant changes in netflow activity.
If inflows consistently rise above $50 million, bullish sentiment may grow. On the other hand, continued outflows below the $-50 million level could apply further downward pressure.
