PEPE Token Flashes Double Buy Signal Amid 17% Drop

PEPE’s daily chart has generated two significant TD Sequential buy signals that technical analysts are watching closely. According to analyst Ali Martinez, a green ‘A13’ appeared on September 22, followed by a red ‘9’ candle on September 24. These signals emerged after PEPE dropped more than 17% over the preceding seven days, with the token hitting local lows before recovering slightly to $0.00000969. Both TD Sequential signals are widely monitored indicators that traders often associate with a potential pause in selling pressure.

At the time of writing, PEPE trades at $0.0000094 with a daily turnover of $370 million, representing a 2% decline over 24 hours. Martinez highlighted the significance of these signals in a social media post, noting that the TD Sequential had just flashed two buy signals on PEPE’s daily chart. The appearance of these signals following a significant price drop suggests that the downward momentum may be exhausting itself, potentially setting the stage for a short-term reversal.

Adding another layer to the technical analysis, analyst Butterfly observed that PEPE is consolidating within a symmetrical triangle pattern. The price is currently moving near the lower boundary of this formation, which has acted as support on several occasions throughout 2025. This pattern typically indicates a period of consolidation before a significant price movement, with traders watching for a breakout above the triangle’s upper line to confirm bullish expectations.

Butterfly commented that ‘Smart money is loading up,’ suggesting that institutional or sophisticated traders are accumulating positions during this consolidation phase. The analyst added that ‘After bulls regain full control, PEPE has potential to soar toward new highs.’ The symmetrical triangle pattern, combined with the TD Sequential signals, creates a compelling technical setup that suggests the current price level near $0.0000094 could represent a significant support zone.

Further evidence of potential exhaustion in the downward move comes from momentum indicators on the 4-hour chart. The Relative Strength Index (RSI) stands at 31, approaching the oversold threshold of 30. This level suggests that downward momentum may be stretched, increasing the probability of a relief bounce. Meanwhile, the MACD line sits slightly below the signal line, with only a narrow gap separating the two indicators, showing that bearish momentum is slowing.

Perhaps the most telling data comes from the futures market, where long traders absorbed significantly heavier losses than short positions. On September 25, more than $600,000 in long positions were liquidated compared with only $46,000 in shorts. The largest losses were recorded on exchanges OKX and Gate. This substantial imbalance indicates that many traders maintained bullish expectations despite the downtrend, with their leveraged positions being cleared when the anticipated rebound failed to materialize.

The $600,000 in long liquidations during a downtrend often reflects overextended bullish bets being flushed from the market. This clearing of leverage can create healthier conditions for a potential rebound, as it reduces the overhang of forced selling. However, until this leverage reset completes, market conditions may remain volatile. The combination of oversold technical indicators, key pattern support, and leveraged position unwinding creates a complex but potentially bullish setup for PEPE in the near term.