- In the last article, we expected PEPE to take liquidity below after reaching supply—but it skipped the supply and dropped early
- The supply zone is still valid, and now we’ve got fresh trendline liquidity forming both above and below
- A touch of supply before grabbing the lower liquidity could trigger a sharp rejection
- No scenario is 100%—price can (and often does) surprise us
In our previous PEPE analysis, we talked about how the price might dip to grab some of that juicy liquidity resting just below structure—and how we liked the idea of shorting from the supply zone if price reached it first.
Well, guess what?
PEPE decided to do its own thing (classic), skipped the full climb to supply, and dropped straight down. Brutal? A little. Surprising? Not really.
If you’ve been trading these memecoins long enough, you’ll know: they move fast, they break rules, and they rarely wait for your perfect entry.
That Supply Zone Is Still Alive
The supply area we marked out in the last analysis?
Still very much valid.
Even though PEPE didn’t reach it last time, that zone hasn’t been mitigated yet—which means the potential for a strong reaction is still on the table, especially with price now leaving liquidity both above and below via clear trendlines.
I’ve seen this before: the market builds a structure that looks ready to explode in either direction, but instead, it fakes one side out, grabs that liquidity—and then boom, reverses hard the other way. Textbook liquidity hunt.
If PEPE does climb back up toward that unmitigated supply zone before taking the lower liquidity, we could see a sharp rejection from there.
And no, this isn’t hopium—it’s based on how these areas tend to work when price is hunting imbalance and liquidity at the same time.
But hey, let’s keep our feet on the ground.
A Quick Reality Check
We can map out all the possible outcomes, draw our supply zones, identify trendline liquidity… and price could still do whatever it wants.
That’s the nature of this game.
All we’re doing is framing possibilities—not certainties.
So yeah—our scenarios today?
- If price hits the supply before sweeping the lower liquidity → strong short setup.
- If price sweeps first and then moves to the supply → setup loses confluence.
- If price ignores both and goes full degen-mode? We adapt.
Simple, not easy.
