PEPE Price Is Climbing Again – but This Analyst Warns of a Hidden Trap

Pepe Coin is making some noise today, climbing nearly 8% to trade around $0.00001104. Its 24-hour volume is also up more than 80%, which has sparked interest across the crypto space. But not everyone is convinced the rally will last.

Veteran trader Matthew Dixon shared a warning on X, pointing out that despite the recent bullish vibes, the chart tells a different story. He flagged a few red flags that suggest the current move might not hold up.

According to Dixon, PEPE price is showing signs of a Head and Shoulders pattern forming, along with a corrective wave structure and a hidden bearish divergence on the RSI. Put together, these signals raise what he calls “a few immediate concerns” that could point to a short-term pullback.

PEPE Bearish Chart Structure Is Still Intact

The daily PEPE chart shows a clear Head and Shoulders pattern forming over the past several months. The left shoulder appeared in late 2023, the head formed during a sharp rally in early 2025, and the right shoulder is currently taking shape

PEPE Price continues to trade below a key descending trendline, which has capped each attempt to break higher.

The neckline zone between $0.00001150 and $0.00001200 has been tested multiple times but not reclaimed. Unless PEPE can close above this area with volume, the neckline remains a major resistance level.

Image Source: X/MattewDixon

Moreover, a hidden bearish divergence on the RSI adds more pressure. While RSI has been posting higher highs, price action has been horizontal or trending downward slightly. This kind of divergence tends to suggest that momentum is weakening even when the price is attempting to rally.

The analyst also mentioned that PEPE recent moves resemble a corrective wave structure, which often appears during relief rallies and not during strong uptrends.

Read Also: Kaspa Price Prediction for Today (July 10)

PEPE Price Support Levels to Watch and What Could Flip Sentiment

PEPE’s closest support sits between $0.00000800 and $0.00000850. If the price drops below $0.00000900, there’s a good chance it could slide back into that range. And if $0.00000800 doesn’t hold, the next area to watch would be somewhere around $0.00000680 to $0.00000720.

For the bulls to really flip the script, PEPE price would need to break above that downtrend line, close above the neckline with strong volume, and show some real strength by pushing the RSI past 65. Without those pieces in place, the setup still leans bearish. Until those conditions are met, technical pressure remains on the downside.

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