PEPE, the third-largest meme-based cryptocurrency, is encountering challenges in sustaining its upward momentum. Despite a strong start to 2024, marked by an impressive 839% year-to-date growth, the coin is currently grappling with resistance from a crucial supply zone.

The meme coin market as a whole has experienced a downturn, with a combined market cap falling by 7.72% in the last 24 hours. PEPE has mirrored this trend, dropping 5% within 48 hours. However, the coin has managed to hold onto a crucial support level, suggesting a potential comeback aligned with a broader market recovery.

A closer look at the daily chart reveals a lateral trend, hinting at a possible head and shoulder pattern. This formation, if confirmed, could indicate a bearish outlook. Conversely, the intraday chart shows a lower price rejection, which can be interpreted as a bullish signal, potentially signaling the start of a new upcycle.

The four-hour chart adds another layer of intrigue. A pennant pattern has formed, often seen as a precursor to a significant price movement. If PEPE breaks out of this pattern to the upside, it could propel the coin to new heights. Based on Fibonacci levels, a potential target for this move is $0.00001846.

While the overall picture for PEPE remains cautiously optimistic, the coin's ability to overcome the current resistance is crucial for the continuation of its bull run. Investors should closely monitor price action and technical indicators for clues about the next move.

Ultimately, the meme coin market remains highly volatile, and past performance is not indicative of future results.