PEPE price is facing selling pressure after a sharp reversal from its July peak, as traders monitor key support levels for the next move. Veteran trader Matthew Dixon shared an analysis on X, pointing to a bearish divergence and a potential continuation of the token’s ongoing correction.
Dixon’s tweet notes that PEPE formed a higher high in mid-July while the RSI (Relative Strength Index) created a lower high, confirming a bearish divergence.
This pattern often signals weakening momentum. After the divergence formed, PEPE price reversed sharply downward, falling toward the $0.000010 area.
On the 4H chart, PEPE appears to be in either an ABC corrective pattern or the early stages of a 1-2-3-4-5 bearish impulse.
Both scenarios suggest that the downtrend may not be over. The market currently appears to be in wave C or 3, which Dixon notes could already be forming or have just completed.
PEPE Key Levels to Watch
PEPE price is holding around a key support zone between $0.000010 and $0.0000095. If the price slips below this area, selling could pick up fast, with the next support sitting near $0.00000880 to $0.00000820, where the token last found a base.
On the upside, the first hurdle is around $0.0000115 to $0.000012. According to Dixon, a strong move above $0.0000125 with volume could mark the end of the ABC correction and set up a rebound toward $0.0000138 to $0.0000150. Until that breakout happens, any bounce is likely just a short-term recovery.
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Additionally, the RSI is now close to 42, suggesting a small recovery in momentum, having previously dipped near the 30 mark.
There’s no bullish divergence yet since both RSI and price remain at lower lows, which indicates that the current move could at best be corrective.
Dixon’s view remains neutral to slightly bearish. He expects PEPE price might see a short-term bounce and retest resistance, but without a breakout, another drop is on the table.
Failure to hold the 0.0000095 level could see the price drop to 0.0000082, and perhaps even $0.0000070 if panic selling occurs. For now, the lack of market direction is causing traders to be flexible.
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