PEPE Tests Key Trendline Ahead of FOMC Meeting This Week

PEPE trades 3% lower but holds key support near its long-term Fibonacci trendline.

Analysts say once the green range breaks, the token’s could revisit the upper red resistance zone.

Chart data shows tightening volatility signaling a possible rebound after the FOMC meeting.

Pepe trades near a crucial support line ahead of the Federal Open Market Committee (FOMC) meeting this week. The token, which dipped 3.08% to $0.00000692, now tests the green zone of its long-term ascending channel. Market analysts say such moves often precede sharp rebounds once the FOMC concludes its decisions on interest rates.

According to on-chain chartist “The_Wok,” the PEPE chart on TradingView shows the token consistently respecting the same trendline “since the start of time.” The analysis, shared by trader @kek0x, suggests that once the green range is broken, PEPE could revisit the red range above. The observation highlights the token’s cyclical behavior during macroeconomic events.

Pepe’s Market Reaction and Historical Correlation

Historically, the token tends to drop during FOMC weeks before reversing direction once the meeting ends. The analyst noted that “QT ends and risk sends,” referencing how the conclusion of quantitative tightening (QT) often restores liquidity and boosts speculative assets like meme coins.

This week’s dip follows a broader trend seen across risk markets. Traders anticipate that the Federal Reserve may pause or even cut rates in upcoming sessions. Similar events in the past triggered a wave of optimism and renewed buying across crypto assets.

The current pattern aligns with past Pepe’s price cycles. Each major FOMC announcement has historically created volatility, followed by recovery. Analysts view the ongoing range test as a technical setup rather than a breakdown, suggesting the token’s uptrend may remain intact as long as the green range holds.

Technical Chart Structure Signals Rebound Potential

The TradingView chart shows a Fibonacci-based channel, where the lower green range represents strong support and the upper red zone acts as resistance. PEPE has tested this structure multiple times without a confirmed breakdown.

At present, the token trades between the 0.236 and 0.382 Fibonacci levels. This narrow compression indicates a potential accumulation phase before a volatility expansion. Bollinger Bands on the 4-day chart also reveal tightening volatility, signaling that a breakout may be near.

The visual data suggests the next significant price target lies within the red range. If the green zone holds, technical models indicate a possible return toward $0.00001200 to $0.00001400 in the medium term. The Fibonacci confluence and long-term trendline make this a critical juncture for traders tracking market sentiment.

Pepe’s Community Outlook and Broader Market Sentiment

Social media reactions to the chart remain mixed. While some traders express caution due to macro uncertainty, others see opportunity in PEPE’s resilience near trend support. The post by @kek0x has gained over 5,700 views, signaling active community engagement and growing attention toward PEPE’s technical setup.

This renewed focus on macro-driven meme coins underscores how traders increasingly align strategies with FOMC timelines. With liquidity expected to expand post-meeting, speculative assets such as PEPE could again benefit from renewed risk appetite.

As of now, PEPE’s price action continues to track the same long-standing trendline that has guided its market structure since 2023.