- PEPE is showing a bearish reversal signal with a head and shoulders pattern that could deepen its decline soon.
- Traders await confirmation as Fibonacci zones reveal possible breakdown levels below $0.00000521 across major charts.
- Market sentiment is divided as some expect a 70% drop while others foresee a potential fakeout and rebound pattern.
PEPE is showing signs of a bearish head and shoulders formation that could signal an extended downtrend. According to data shared by analyst Ali (@ali_charts), the memecoin’s structure now mirrors a classic reversal setup. The price trades near $0.00000668, down by roughly 0.87% over the previous session.
The chart, published on TradingView on October 22, 2025, shows a clear three-peak structure. The “left shoulder” emerged around mid-August 2024, followed by a higher “head” at late November highs, and a “right shoulder” forming recently. Each phase reveals weakening bullish strength as sellers tighten control over price direction.
If confirmed, this technical formation could push PEPE toward $0.00000185 — marking a steep decline from current levels. Such a move would align with the pattern’s projected breakdown measured from neckline to head height.
The neckline appears to have broken, yet Ali cautioned that confirmation is essential. He stated that he plans to short PEPE “if confirm, I’ll short it for sure.”
Traders Eye Fibonacci Levels for Support
The chart overlays several Fibonacci retracement zones that help map PEPE’s potential support and resistance targets. The 0.786 level near $0.00000675 has already been breached, suggesting continued downward momentum. The next critical region lies at $0.00000521, which aligns with the 1.0 Fibonacci extension.
Beyond that, projected targets extend further: $0.00000393 at 1.272, $0.00000361 at 1.414, and the main $0.00000185 at 1.618. Each level represents a potential resting point for price action should selling pressure persist.
Market participants often interpret such Fibonacci breakdowns as signposts for price exhaustion or entry zones. However, without a reversal signal, the trend remains decisively bearish. Analysts and traders are now watching for volume spikes that could validate or invalidate the pattern.
The analysis indicates that sellers dominate while buyer activity continues to thin. This scenario often precedes cascading sell-offs in low-liquidity environments. As PEPE remains highly speculative, even small shifts in sentiment could trigger sharp market responses.
Community Reactions Reflect Divided Sentiment
Reaction to Ali’s chart on X shows divided trader sentiment. Some users agreed with the bearish thesis, suggesting the setup presents a clear shorting opportunity. One reply stated bluntly, “short it then,” reflecting confidence in a continuation of the decline.
Others, however, warned against relying solely on chart shapes. User @enhan319 pointed out that valid head and shoulders patterns require confirmation beyond visual symmetry. He added that traders should monitor “on-chain big transfers to exchanges, concentrated single-swap sells, and shrinking DEX liquidity.”
Such factors could strengthen the bearish case by signaling genuine distribution among whales. Conversely, he noted the absence of “signs of that,” hinting at a potential fakeout or sideways correction before a major move.
Ali reiterated the need for confirmation, noting he would act only upon a validated breakdown. His chart suggests that a confirmed breach could push PEPE below multiple support zones, possibly driving the token toward 2026 lows.
