PEPE coin price flips market structure as bullish engulfing signals buyer control

The PEPE coin price shows early reversal strength after bullish engulfing candles and rising volume have reclaimed key support, increasing the probability of a continuation toward higher resistance.

PEPE (PEPE) coin price is beginning to show signs of a potential market structure shift after a strong bullish response sparked renewed momentum on the chart. Following months of bearish pressure, price action has now produced a sequence of bullish engulfing candles that aggressively pushed PEPE higher, suggesting buyers are stepping back in with conviction.

This move is technically meaningful because it was supported by expanding volume, which adds credibility to the breakout rather than signaling a temporary relief bounce. With PEPE now reclaiming key levels and retesting the breakout zone as support, the market is entering a pivotal phase where a broader reversal could develop if price holds above newly reclaimed structure.

PEPE coin price key technical points

• PEPE printed strong bullish engulfing candles, signaling buyer control
• Rising volume confirms genuine participation, strengthening the breakout
• Holding reclaimed support opens upside potential toward value area high resistance

PEPEUSDT (1D) Chart, Source: TradingView

Bullish engulfing candles are often a reliable early signal of momentum shifts, particularly when they emerge after extended bearish trends. In PEPE’s case, the engulfing structure was not isolated, it appeared with follow-through strength and pushed price into the value area low region, marking a clear shift in short-term behavior.

Technically, this type of move suggests that sellers are losing control and that buyers are willing to transact more aggressively at higher prices. When an asset transitions from being capped by resistance into reclaiming and holding higher levels, it often signals that market structure is beginning to change.

What stands out is that PEPE’s move higher was not slow or corrective. It was impulsive, which matters from a market structure perspective. Impulsive expansions often indicate that the move is demand-driven, rather than a temporary bounce caused by a lack of liquidity.

Retest and support flip structure

Following the impulsive breakout, PEPE is now undergoing a retest phase, in which the previously resisted zone is attempting to turn into support. This is one of the most critical moments for any reversal setup.

A successful retest confirms that buyers are willing to defend the new support region. It also signals that the market has accepted a higher value and is less likely to revert immediately to the bearish range.

As long as PEPE remains above this reclaimed support zone on a closing basis, the market structure remains constructive. Losing the level would weaken the reversal narrative and suggest the move higher was only temporary.

However, if the level holds and price forms a higher low, it would confirm the early bullish structure and set the foundation for a larger continuation move.

Upside target and potential 187% rally

If the support flip is confirmed, PEPE’s next major target sits at the high-time-frame resistance near the value area high. This zone represents the next structural ceiling on the chart and would be the key liquidity target if bullish continuation develops.

A move into that region would represent a significant rally potential, roughly 187% upside from current levels based on the projected range expansion. While such a move would not happen instantly, the structure supports the possibility if volume remains intact and the reversal continues to develop.

Reclaiming the value area high would be a major confirmation that the broader bearish structure has been negated. It would signal that PEPE has shifted from corrective price action into a more sustained trend recovery.

Market structure shift and reversal conditions

To confirm a full market structure reversal, PEPE needs to establish both a higher low and eventually a higher high. The bullish engulfing move represents the first stage of this transition, while the retest phase will determine whether the structure can hold.

If price maintains support and continues building bullish momentum, it increases the probability that PEPE can break through overhead resistance and fully transition into a new trend cycle.

Volume remains the key factor. A larger rally is most likely if volume stays elevated and supports continuation rather than fading during consolidation.

What to expect in the coming price action

In the near term, PEPE is likely to remain focused on holding reclaimed support after its bullish engulfing breakout. As long as price continues to close above this support region and volume remains constructive, the probability of continuation toward value area high resistance increases.