The price of the Pepe meme coin could be ready for recovery following a long dip. The token has been showing some candlestick patterns that suggest a recovery since six days ago and has since then risen by more than 10% at the time of writing.
This bullish outlook was also supported by Ali, a popular crypto analyst on X. He identified promising signs for the PEPE token potential price recovery. According to his recent analysis, the TD Sequential indicator is showing an encouraging buy signal on PEPE weekly chart.
$PEPE is showing signs of a potential rebound as the TD Sequential indicator flashes a buy signal on the weekly chart. pic.twitter.com/zlV9yAeFyx
— Ali (@ali_charts) February 12, 2025
Looking at the weekly PEPE/USDT chart shared by Ali, a clear downtrend has dominated recent price action. The chart reveals a series of bearish candlesticks that have pushed the price consistently lower over several weeks. However, this persistent decline might be approaching its end.
The TD Sequential indicator, a technical analysis tool developed by Tom DeMark, has flashed a significant buy signal. As Ali points out, the appearance of a “9” count on the weekly timeframe suggests the current downtrend may be exhausting itself. This indicator is particularly noteworthy as it has historically been reliable in identifying potential trend reversals.
What you'll learn 👉
Signs of Buyer Interest Emerging
Recent price action shows encouraging signs of buyer activity, particularly visible in the latest weekly candle’s long lower wick. Ali’s analysis highlights this feature as a potential indication that buyers are beginning to defend these price levels, rejecting further downside movement.
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While Ali’s analysis presents a compelling case for a potential rebound, traders typically look for additional confirmation signals. The TD Sequential buy signal, combined with emerging signs of buyer interest, suggests PEPE could be forming a local bottom. However, as with all technical analysis, the coming weeks will be crucial in validating this potential reversal setup.
Key PEPE Price Level to Watch
Following these recovery signs, some former supports that were broken could potentially serve as resistance. The first clear one is at $0.00001148. Following this, the price could continue up to $0.00001403, then $0.00001707.
Pepe will also have to break through a bigger descending trendline at the last key level of $0.00001707. A success at this level would make the retracement process successful and could flip it into a major change of direction.
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