A sharp drop in the PEPE price has pulled the chart back into a critical zone. The token has fallen more than 40% since mid-October, creating pressure around an area that traders have been watching for months.
A deeper look at the weekly chart shared by Crypto Patel on X shows a situation that is far more complex than a simple collapse.
What you'll learn 👉
PEPE Price Sliding Below Weekly Support Creates Tension
Crypto Patel explains that the PEPE token slipped under a major weekly support area sitting around $0.00000280 and $0.00000136. That region has acted like a safety net for a long time, so a move below it usually warns of weakness. Some traders might assume the trend has shifted completely.
A surprising detail appears on the chart once the weekly candle is studied closely. The price did not simply fall through. The wick pierced below support and then bounced quickly, forming a pattern that often signals a liquidity sweep. Crypto Patel frequently points to this type of movement as a sign that the market could be clearing out stop orders before trying something bigger.
The left side of the chart even shows a previous example where an almost identical dip led to a huge impulse. A long green vertical block marks that explosive run, reminding viewers how PEPE reacts after sweeping deep liquidity.
PEPE Token Rejection Turns into a Possible Reversal Start
A pale zone on the chart marks a fair value gap sitting just above the swept region. Price moved into this gap almost immediately after the drop. Crypto Patel highlights this return as an early step in a possible 50% to 100% relief push. It is not a sudden surge. It is a slow press upward from the bottom wick.
The chart places the S/R level directly above this bounce. The PEPE token is now testing that area, trying to regain control of the range that guided its movement through most of 2024. A flip of this level would shift the conversation away from collapse and toward potential recovery.
Crypto Patel identifies Resistance 1 at the mid-range zone. A break above that level opens room toward Resistance 2 where targets extend toward $0.00000914 then $0.00004494.
Pepe Price Story Shifts Once Resistance Flips
The first push from the sweep only sets the foundation. Crypto Patel’s chart shows the bigger momentum starting once the PEPE price breaks through Resistance 1. A clean move above that area could create the structure needed for a stronger expansion.
The chart includes large green vertical bars that represent previous impulse runs. One of them stretches more than 4,200% from wick to wick. These bars reflect how quickly PEPE can move once weekly structure aligns in its favor.
Crypto Patel maps a similar possibility near the upper resistance. If resistance flips and the chart regains strength, an extended rally toward 1,000% to 1,500% becomes possible. The setup depends entirely on structure, not wishful thinking.
PEPE Drop Looks Scary Yet Follows a Familiar Pattern
The RSI sits near 40.57 on the weekly timeframe. The level reflects weakness without showing extreme exhaustion. The gradual decline of the RSI since mid 2024 matches the overall downtrend, which gives more weight to the idea that the drop could be a controlled sweep rather than a meltdown.
Many traders are split between calling this a full breakdown or a classic trap that PEPE likes to create before larger moves. Crypto Patel leans toward the trap scenario based on the wick shape, the liquidity grab, and the immediate bounce into the fair value gap.
A true collapse would require a weekly close far below the region with no attempt to recover. The chart shows the opposite. A deep wick forms, then price reacts upward. That shift is why the next few candles matter more than the initial drop.
The Path Ahead for PEPE
A move below support always sparks fear among holders. A liquidity sweep always brings confusion. Crypto Patel’s explanation sits right between both emotions. His chart shows a setup where the PEPE token could be preparing for a major shift once resistance flips.
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The PEPE price now faces a simple yet crucial test. A reclaim of the S/R level creates space for a relief run. A flip of Resistance 1 opens the door to higher targets. Failure to hold above the reclaimed zone leaves the door open for deeper movement into the lower support band.
The chart shows multiple possible paths. The next few weeks may reveal whether this was the beginning of a collapse or the early stages of a trap pump that catches the market off guard.
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