---
title: "+10% pullback signals bullish trend continuation"
url: https://diffcoin.com/10-pullback-signals-bullish-trend-continuation/
description: "PEPE’s pullback is a bullish correction. Key support levels suggest a higher low is forming, likely leading to a breakout and continuation of the uptrend if volume confirms the move."
published: 2025-05-23
updated: 2025-05-23
author: "Mila"
site: "Diffcoin"
---

# +10% pullback signals bullish trend continuation

PEPE has recently rejected a key resistance level, prompting a pullback in the current uptrend. However, technical indicators and market structure continue to signal strength, with a higher low likely forming.

PEPE’s (PEPE) price action has cooled off after hitting a clear resistance level, but the broader trend remains firmly bullish. The latest dip is being interpreted as a potential higher low in a healthy market structure, with several confluences pointing toward another leg up. Market participants are watching for a confirmed hold at key support to validate the continuation of the rally.

## Key technical points

- **Support Zone Confluence:** Price is testing support at the value area high, aligning with the 0.618 Fibonacci retracement and VWAP — a strong bullish confluence.
- **Bullish Market Structure:** Higher highs and higher lows continue to define the uptrend; current pullback is seen as a constructive retest.
- **Volume Profile Insights:** A recent volume climax may signal a local top, but continuation above resistance will require fresh volume influx.

![PEPE price prediction: +10% pullback signals bullish trend continuation - 1](https://crypto.news/app/uploads/2025/05/PEPEUSDT_PUMP.png)

PEPEUSDT (4H) Chart | Source: TradingView

Following the rejection at local resistance, PEPE has pulled back into a high-probability demand zone. This area — defined by the value area high, the 0.618 Fibonacci level, and the VWAP — is acting as a dynamic support zone. These overlapping indicators make it a prime location for bulls to defend and re-establish momentum.

From a structural standpoint, PEPE is maintaining a clear pattern of higher highs and higher lows. The recent correction does not invalidate the bullish trend but instead provides a reset within it. As long as the higher low structure remains intact and price closes above the current support zone on the 4-hour chart, further upside looks increasingly probable.

Volume also plays a pivotal role here. While a recent volume climax hinted at short-term exhaustion, it does not signal a long-term reversal. Rather, it’s a marker of a local top. For PEPE to push higher and breach the current resistance, buyers will need to step in with conviction, marked by increased and sustained volume levels.

## What to expect in the coming price action

If PEPE holds this key support zone, a move back toward local resistance becomes likely. A successful breakout, backed by volume, could trigger an expansion phase and new highs. Until the bullish structure is invalidated, dips like this continue to offer potential buying opportunities.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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