PEPE Price Holds the 21 EMA as Bullish Retest Signals Reversal Potential
The PEPE price is exhibiting early signs of a structural shift, with the price action remaining above the 21 exponential moving average (21 EMA) after entering the support zone. This development is technically significant, as the 21 EMA has consistently acted as resistance since early October, limiting upside attempts and suppressing the broader trend.
As seen in the 
PEPEUSDT (4H) chart, the 21 EMA has been a crucial level, with price attempts to clear it being halted before a continuation could develop. The persistent failure to clear this level reinforced the bearish structure and prevented the market from building sustainable upward momentum.
Key Technical Points of the PEPE Price
The PEPE price has turned the 21 EMA into support, signaling an improvement in the trend. The 21 EMA previously acted as resistance since the beginning of October, making the recovery significant. An eruption above the Value Area Low (VAL) with volume and a rotation towards the control point could confirm the reversal narrative.
The 21 EMA is often used as a trend filter, particularly for identifying momentum shifts during rallies. When the price is below, rallies often remain corrective, and sellers tend to remain in control. When the price reclaims the 21 EMA and holds it as support, the market structure often begins to shift in a bullish direction.
Why the Current Retest is Crucial
Breakouts often fail when the price cannot hold at the regained level upon retest. That’s why PEPE’s current trading location is so important. The market is now testing whether the 21-EMA can actually act as support instead of falling back into resistance. If PEPE continues to close above the 21 EMA, it will confirm acceptance and signal that buyers remain active at higher levels.
However, if PEPE fails to hold the 21 EMA and closes below it again, the reversal thesis will weaken significantly. This would suggest that the move was just a temporary breakout attempt, and the price could return to the lower support areas.
The Low in the Value Area is the Next Breakout Level
The next important resistance zone is the Value Area Low (VAL). This level represents an important boundary in the volume profile where price transitions from lower acceptance to higher value. If PEPE breaks the low of the strong consequence value range, it would signal that the market is moving higher towards a higher accepted value.
However, breaking VAL alone is not enough. The breakout must occur with conviction, meaning the candle closes strongly and participation increases significantly. A successful breakout would strengthen the reversal narrative and open the door for a rotation towards the control point, further confirming a shift in market structure.
What to Expect from the Upcoming Price Development
In the short term, PEPE’s bullish reversal potential depends on one key factor: continued support at the 21 EMA. As long as the price stays above this moving average and maintains acceptance, the probability of a continuation into higher resistance zones remains high. The next big test will be whether PEPE can break above the low of the value range with conviction and volume confirmation.
For more information on the PEPE price and its potential reversal, visit https://crypto.news/pepe-price-holds-the-21-ema-as-bullish-retest-signals-reversal-potential/
