Pepe [PEPE], the meme-inspired cryptocurrency, has been experiencing a turbulent phase with a decidedly bearish structure that looms over higher timeframes. Currently, expectations suggest a potential upward movement of around 5%, yet the demand indicators remain weak, signaling a possible halt in further gains.

Recent analysis indicates that Pepe has been witnessing significant outflows from various exchanges, sparking some interest in accumulation among certain holders. However, many investors are still at a loss, and the persistent selling pressure has perpetuated a downtrend throughout the year. This ongoing bearish sentiment hasn't found a clear resolution as of yet.

Current Price Action and Support Levels

Despite the overarching bearish sentiment in higher timeframes, lower timeframes reveal signs of consolidation for Pepe. Over the past fortnight, the cryptocurrency has traded within the bounds of $0.00000572 and $0.00000736. The consistency of this range formation is notable, as both extremes have been respected, alongside the mid-range level of $0.00000655.

The frequent tests of this mid-range support, paired with Pepe's ability to respond robustly to these tests, enhance the credibility of this range formation. As of the latest data, the Relative Strength Index (RSI) has climbed back above the neutral 50 mark after a dip over the weekend, suggesting a short-term bullish momentum that might propel PEPE towards the range highs.

While a breakout isn't anticipated, traders should remain vigilant to manage risks in case market movements shift unexpectedly.

Key Levels to Watch

A closer look at the 1-month liquidation heatmap reveals a significant cluster of liquidity around the $0.0000075 mark, just above the established range highs. This suggests the possibility of Pepe's prices edging up by another 5% in the short term to tap into this liquidity pocket. Beyond that, the next significant level to watch is $0.000009, which appears to be another potential target for traders.

The volume indicators, however, do not support the likelihood of an imminent breakout, reinforcing the idea that the current range formation could persist for a while. Moreover, the 1-week heatmap highlights a liquidity pocket between $0.00000745 and $0.0000075, which could serve as a critical reference point for upcoming market movements.

On the flip side, the local low around $0.00000645 presents a near-term bearish target. This level sits just below the mid-range area, suggesting that a retest here might provide swing traders with a strategic buying opportunity.

Market Influence and Future Implications

Amidst all of this, the volatility of Bitcoin [BTC] remains a crucial factor. Fluctuations in Bitcoin's price could disrupt the ongoing range formation for Pepe, leading to potential deviations during traditional market hours, especially in New York.

In summary, while Pepe is currently navigating a challenging landscape with bearish overtones, minor upward movements could provide opportunities for savvy traders. Keep your eyes peeled on key levels and market dynamics in the coming days to capitalize on potential price movements!