Pepe (PEPE) has captured significant attention with its recent rally, yet it now finds itself at a critical crossroads. The popular memecoin faces a formidable challenge as it navigates key resistance levels, where historical price actions suggest a potential for considerable downside. Investors are left weighing strong bullish momentum against looming bearish probabilities.

Navigating Critical Resistance

PEPE is currently contending with a crucial resistance zone that has historically proven to be a significant hurdle. On two previous occasions, when price reached this specific level, it subsequently experienced a sharp 19.39% decline, indicating robust selling pressure. Should PEPE fail to breach this barrier again, it risks a similar retracement. However, a successful breakthrough could propel the token higher, potentially targeting a supply FVG (Fair Value Gap) on the chart between $0.00000550 and $0.00000580, suggesting further upside if this historical resistance is overcome.

Conflicting Market Signals

Despite the looming resistance, several momentum indicators paint a largely bullish picture. The Moving Average Convergence Divergence (MACD) shows strong positive momentum, with its blue line crossing into positive territory and above the orange signal line, signaling heightened market interest. Similarly, the Aroon Indicator reinforces this bullish trend, with Aroon Up remaining dominant. Conversely, a significant bearish probability persists due to the presence of liquidity clusters observed below the current price on the liquidation heatmap. These clusters are known to attract price action, potentially pulling PEPE downwards and aligning with existing supply zones, which could trigger a downward sweep despite the otherwise positive momentum signals.