As PEPE recovers, price action analysis suggests a potential trap for buyers. Heres why PEPE could face a bearish extension.As Bitcoin stabilizes around the $102,000 mark, meme coins are navigating a rocky path. After dipping to $87 billion, the total meme coin market valuation has now recovered to $92.71 billion.Despite the overall market recovery, top meme coins like PEPE have yet to recover from yesterdays downturn. With an intraday recovery of 9.49%, PEPE is above the $0.000011 level.However, the recent pullback suggests the possibility of an extended correction following a retest. Could this correction phase undermine the November 2024 rally for PEPE? Lets take a closer look.PEPE Price AnalysisThe Pepe price action in the daily chart reveals a falling channel pattern breakdown. On January 26, a pullback of 7.35% breached the 200-day EMA line and the local support trend line. PEPE Price ChartAs the correction extended, the bears pushed prices lower, forming a triple black crow pattern. However, buyers regained control near the $0.000011 level, leading to a quick reversal.Currently, the intraday recovery has brought PEPEs price to $0.00001257, forming a bullish harami pattern. Buyers could regain control of the trend if PEPE can overcome the recent bearish engulfing candle.Supporting the intraday recovery, the daily RSI has shifted away from the oversold boundary. However, the declining trend in the dynamic support average line continues.Following a recent negative crossover between the 20 and 100 EMA lines, the 50 and 100 EMA lines are also heading for a negative crossover. This suggests a strong selling signal for price action traders.PEPE Price TargetBased on Fibonacci levels, the intraday recovery is testing the 38.20% Fibonacci level at $0.00001252. For a sustained recovery, PEPE will need to surpass the 200-day EMA.Furthermore, the 50% Fibonacci level's crucial resistance level coincides with the 200-day EMA line. Hence, a bullish comeback above this will increase the possibility of Pepe overcoming the local resistance trend line.However, given the volatility in the broader market, PEPE is likely to experience a post-retest reversal from the support trendline. This could test the 23.60% Fibonacci level near the $0.000010 psychological support.Beyond this, a bearish continuation may push PEPE to test the $0.00000792 support level. From PEPE's current price, this represents a potential loss of 38%.
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