PEPE’s Price Retraces: Opportunity or Red Flag?

PEPE broke below key support at $0.0000138, signaling potential short-term weakness.

Liquidity zone near $0.0000124 could trigger a bounce and attract smart buyers.

RSI dropped while OBV stayed flat, showing caution but not panic in the market.

PEPE’s rally has slowed, and the chart no longer looks unstoppable. After blasting through resistance in May, this memecoin suddenly hit a wall. The 61.8% Fibonacci level at $0.0000145 rejected further gains. Now, the price has dipped under $0.0000138. Fear creeps in. Is this just a breather, or the start of something worse? Traders need to read between the lines. A deeper retracement may hide the next big move.

Cracks in PEPE's Momentum

PEPE soared beyond expectations, but the last four days have lacked energy. Buyers stepped back, and sellers took their shot. Bitcoin’s momentum cooled during this time, which rippled across altcoins. The entire market paused. PEPE’s mid-range support at $0.0000138 gave way—another warning sign for traders. The RSI told a similar story. It dropped below 50 on the 4-hour chart, signaling control shifting to sellers. However, OBV painted a calmer picture.

Volume stayed low, showing a lack of panic or enthusiasm. That suggests traders waited. Watching. Planning. Open Interest also remained flat, confirming that traders weren’t flooding the market with new bets. No fresh longs. No heavy shorts. Just quiet uncertainty. Yet, Futures funding stayed positive. That means sentiment hasn’t turned completely bearish. Traders still leaned toward a bullish outlook—even if they weren’t acting on it.

The Liquidity Trap Below

PEPE's one week liquidation map offered key insight. A liquidity pocket sat between $0.0000124 and $0.0000127. These levels rested just below the recent range. Markets love liquidity like moths to light. A dip into this zone would make sense. This move wouldn’t mean disaster. In fact, it may set the stage for a bounce. A quick flush below support could shake out weak hands and lure in shorts. Then, a strong recovery could follow. Still, risk remains. No guarantee exists that buyers will step in immediately.

Traders looking to go long should tread carefully. Position sizing and stop-loss placement will be critical. The market doesn’t reward hesitation—but it punishes recklessness. Keep emotions steady. If the price rebounds from the liquidity zone, it could confirm a bullish reversal. If not, further downside may follow. PEPE might test patience before rewarding conviction. This moment separates gamblers from strategists.

PEPE’s retracement reflects the broader market pause, not just internal weakness. Momentum has cooled, but not collapsed. RSI slipped, but OBV and Open Interest stayed stable. A dip into the $0.0000124 range looks likely. That area could offer smart traders a good entry. The coming hours may define the short-term trend. Caution matters. So does readiness. Those who act with precision—not emotion—will spot the opportunity hidden inside this retrace.