By Km Fazi 
PEPE is approaching a decisive phase as recent price action suggests the market is actively squeezing out bearish traders ahead of a potential structural shift. According to a well-followed pseudonymous analyst, the current move is not about immediate upside but about completing a controlled reversal designed to eliminate downside risk before any meaningful trend change.
Crypto analyst The Composite Trader shared updated insights on X this week, revisiting a setup first introduced in early January. He explained that PEPE’s strong bullish surge at the start of the year was never intended to hold. Instead, the rally served as a liquidity-driven move aimed at setting up a broader reversal.
PEPE Price Reversal Aims to Flush Bears
In his analysis, The Composite Trader described the early-year rally as manipulative, arguing that price was deliberately pushed higher to attract buyers before reversing toward the yearly open. He emphasized that this type of movement is common in markets dominated by large players seeking liquidity rather than sustainable demand.
The analyst’s chart highlights a steep downtrend that began in late 2025, with PEPE losing nearly 50% of its value before settling into a descending curved channel. A notable Break of Structure (BOS) occurred at lower levels, followed by a brief rally into the $0.0065–$0.0075 range.
This short-lived bounce was labeled “manipulation,” suggesting it was driven by buy-side liquidity hunts rather than genuine accumulation. Without strong demand, prices quickly rolled over, reinforcing the bearish structure.
Market Structure Signals Controlled Downtrend
PEPE has since corrected by approximately 33%, erasing a significant portion of its earlier gains. According to The Composite Trader, this move aligns with his initial expectation that the yearly open would be revisited, confirming that bearish momentum remains intact.
He also noted that similar price behaviors are appearing across multiple altcoins, pointing to broader whale-driven market mechanics. These patterns, he explained, highlight why traders should avoid assuming that every bounce represents the start of a new uptrend.
While acknowledging that accumulation phases and bullish reversals will eventually emerge, the analyst stressed that confirmation has not yet arrived. Until then, PEPE remains in a corrective phase that demands patience from both traders and long-term investors.
Another Analyst Sees More Downside If Bitcoin Drops
Adding to the cautious outlook, crypto analyst Davie Satoshi warned that PEPE could experience further declines if Bitcoin revisits lower support levels. He suggested that a drop in BTC toward $85,000 or even $75,000 could trigger additional downside pressure across the memecoin sector.
Satoshi noted that PEPE’s price action has become increasingly correlated with Bitcoin, meaning deeper BTC losses could amplify PEPE’s decline. He also believes that a broader memecoin downturn is likely if Bitcoin weakens further.
Despite the near-term bearish risks, Satoshi remains optimistic about PEPE’s long-term prospects. He expects the memecoin to eventually stabilize, establish new support zones, and reverse sharply once market conditions improve. For traders not currently exposed to PEPE, he views the ongoing correction as a potential buy-the-dip opportunity, provided risk is managed carefully.