Pepe (PEPE) may be on the verge of a trend reversal after a prolonged downtrend, with both technical indicators and on-chain data pointing to a shift in momentum. The meme coin, which recently tested key support levels, is now flashing bullish signals that traders are watching closely.
On the daily chart, the TD Sequential indicator—a popular tool used to identify trend exhaustion—has issued two consecutive buy signals for PEPE. This rare double confirmation suggests the ongoing downtrend may be losing steam.
While these signals do not guarantee an immediate rally, they often precede short-term price recoveries if supported by rising demand. Market participants are now monitoring whether PEPE can build upward momentum from this technical setup.
At the time of writing, PEPE is trading near $0.000009, consolidating around a major demand zone that has historically served as support during previous corrections. Analysts believe the token could briefly dip to test $0.00000885, but if this zone holds, it could form a base for a stronger rebound.
Upside targets include:
$0.00001251
$0.00001420
$0.00001550
However, a breakdown below $0.00000885 would invalidate the bullish setup and could lead to renewed volatility or lower lows in the near term.
Supporting the bullish technical outlook, on-chain data reveals over $2 million worth of PEPE tokens have recently been withdrawn from centralized exchanges. These exchange outflows are often seen as a bullish indicator, signaling reduced sell-side pressure as holders move assets into self-custody wallets.
This decline in liquid supply could:
Limit downward pressure on price
Indicate growing investor confidence
Create conditions for a sharper upward move if demand rises
With fewer tokens available for sale, even a modest increase in buying activity could trigger a stronger price reaction.
Despite these positive signs, market sentiment around PEPE remains fragile. A reversal in token flows back to exchanges would raise red flags and increase the risk of another leg down. Additionally, Pepe’s elevated Network Value to Transactions (NVT) ratio suggests the token may still be overvalued relative to its network activity, a metric often used to gauge speculative froth.
Traders are advised to watch for:
Sustained exchange outflows
Volume spikes confirming upward momentum
Breakout above immediate resistance levels
With a rare double buy signal, exchange outflows, and strong historical support in place, PEPE is at a critical inflection point. If buying pressure returns and broader market sentiment remains stable, the meme token could begin a short-term rally.
However, for a sustainable move higher, PEPE must:
Hold support above $0.00000885
Reclaim resistance near $0.00001251
Maintain low exchange inflows
The next few trading sessions will be crucial in determining whether this setup evolves into a full bullish reversal — or merely a short-lived bounce within a broader downtrend.