What To Know
- PEPE drops 17% but TD Sequential flashes two bullish BUY signals.
- Symmetrical triangle pattern hints at potential breakout and strong price rally.
- MACD bearish crossover and RSI suggest more downside before recovery.
The crypto market has once again been affected by the wrath of bears as most crypto charts have turned red. Pepe, the popular frog-based meme coin, was not an exception as it bled in double digits last week. Nonetheless, this might have just opened up a new window for investors to accumulate the meme coin at a discounted price as analysts predict a possible trend reversal in the coming days.
Ergo, CryptoMoonPress dug deeper to find out what exactly is happening in the PEPE ecosystem and whether investors have already started scooping up the meme coin.
Key Indicator Flashes BUY signal
The price of PEPE has drastically plunged by more than 17% in the last week, disturbing the meme coin community. CoinMarketCap’s data revealed that at the time of writing, the frog-themed crypto was trading at $0.000009444, with a market cap of over $3.9 billion, thereby ranking it as the 32nd largest crypto by market capitalization. While the correction would have created frets in the retail traders, a few prominent analysts feel that this drop could actually lead to a bullish setup.
Famed crypto analyst Ali Martinez drew attention to the fact on X that the TD Sequential indicator has just flashed not one but two consecutive BUY signals for PEPE. For reference, the TD Sequential is a popular technical analysis tool used by traders to identify the exact moments when a trend is about to run out of gas and reverse. Basically, the signal will indicate when a downtrend is in the process of bottoming, laying the groundwork for fresh upward momentum. PEPE has historically responded well to TD Sequential BUY signals, usually conspicuously rallying in the immediate following days after the signals were flashed.
TD Sequential just flashed two buy signals on $PEPE daily chart! pic.twitter.com/5Ith9GTtCw
— Ali (@ali_charts) September 25, 2025
Adding further optimism to the situation, another crypto influencer who enjoys a great following, Davie Satoshi, viewed price charts of PEPE as forming a symmetrical triangle pattern currently. The ideal scenarios for this technical formation are a consolidation phase following which it sees a strong breakout.
Rapid Fire Chart: $PEPE
Time to put your chips on the table. We’re at the end of the triangle and only two paths remain.
🍀Green = Bullish, $PEPE breaks out and wave 3 takes off.
♥️Pink = Bearish, $PEPE slips under support and wave 2 is done.
My bet?
I’m all in on GREEN. 🐸… pic.twitter.com/fgmG2GmUrw— davie satoshi (@NFTdavie) September 25, 2025
Based on Satoshi’s observations, PEPE is already dangerously close to the breakout point, which might just be the trigger for the new bullish stampede. Should the breakout happen, it is bound to witness a sharp price rise, thus bringing into validation the signals seen in the TD Sequential. Taken together, these indicators signal that while PEPE’s short-term correction looked grim, the meme coin could be poised for its next big rally.
There is a Catch!
On another note, price action analysis has shown a steady drift inside a parallel channel, and such channels usually dictate short-term market direction. While parallel channels allow the price to find support/resistance, they also show where momentum might change as soon as the price gets either side of the channel.
Currently, a MACD flashes bearish crossover, which is often seen as increasing downside pressure. This bearish signal might indicate that sellers will be strong enough to continue moving the price down for the short term, slowing down any possibility of an accelerated recovery.
In addition to the MACD, the Relative Strength Index (RSI) expresses a similar scenario. The indicator has not yet entered the oversold region, suggesting that additional selling may be underway before a trend reversal becomes evident. Should this selling pressure increase further, PEPE might test its local support first at the channel’s lower boundary near the $0.00000825 price point.
Analysts consider this level as being very instrumental for the meme coin because a good support retest could then prove to be the catalyst for beginning the next phase of a bulls’ rally. However, if this support fails to hold, further bearish extension could delay the bounce back of PEPE and test the confidence of investors even more.
