• The PEPE chart signals entry into the discount zone as market liquidity resets after heavy long positions were cleared.
• Analyst Carl Moon notes that sell-side liquidity has been tapped and forecasts a televised reversal, with key levels under observation.
• Traders eye PEPE’s buy zone between 0.00000656 and 0.00001632 after multi-month downtrend on the Bybit weekly chart.

PEPE is trading inside a discount zone following extended downside pressure, signaling a potential reversal, according to chart data shared by Carl Moon. The chart, posted on October 31, 2025, shows PEPE/USDT on Bybit with price trading near $0.00000656 after a 10.38% weekly decline.

It highlights sell-side liquidity being tapped and a possible reversal setup forming on the buy-side area marked for recovery. The weekly chart identifies key trading zones between $0.00000655 and $0.00001632, dividing areas labeled as “sell side” and “buy side.” 

Carl Moon referred to this as a solid “spot play” opportunity, noting that most leveraged long positions have already been flushed.  His commentary drew strong engagement online, with thousands of traders discussing the setup’s potential across social media channels.

Technical indicators on the chart show Fibonacci retracement levels aligning near the discount zone, typically viewed as accumulation regions. The projection highlights a possible “5R” risk-to-reward ratio scenario if the reversal holds through upcoming trading sessions. The chart visually captures a pattern of descending pressure breaking toward a support base previously established during mid-2024.

Could PEPE’s return to this range mark the beginning of a new upward phase or another false breakout in a volatile market?

Analysts Refer to Reversal Potential and Discount Dynamics

The phrase “discount zone” used in the analysis refers to price levels trading below major retracement support thresholds. Historically, this setup has been associated with accumulation phases following prolonged liquidations across leveraged positions.
According to the shared chart, the pattern suggests that buyers may soon regain control if liquidity remains balanced.

Community discussions following Carl Moon’s post referenced similar conditions seen in prior meme coin cycles. Some traders compared this setup to patterns observed in 2023 and 2024 with DOGE and SHIB, both of which saw significant rebounds. Others suggested caution, noting that “televised reversals” sometimes appear before deeper liquidity traps in volatile assets.

The shared analysis also visualized PEPE’s liquidity sweep, marking both upper resistance and lower exhaustion zones. In the image, the “buy side” extends toward $0.00001627, while the “sell side” sits near $0.00000655. This gap represents a potential upside window exceeding 140% if price momentum sustains from current levels.

Chart Context and Market Interpretation

The PEPE/USDT chart on Bybit captures a multi-month cycle where the token fell from its early-2025 highs. Despite declines, the pattern now aligns with setups commonly associated with liquidity reset zones. Such formations often reflect markets searching for equilibrium before defining their next dominant direction.

Carl Moon’s statement described this stage as “sell-side liquidity has been tapped,” implying an early sign of exhaustion among sellers. The mention of leveraged longs being “flushed” underscores a completed clearing process that often precedes stabilization. According to his view, the reversal phase could follow as spot traders reenter positions across low-risk levels.

Traders monitoring the setup are now focused on the price reaction near the discount threshold. A steady consolidation above $0.00000655 could validate the setup’s reliability for short-term retracement. For now, the “buy side” projection toward $0.00001632 remains the key technical marker defining the reversal path under current market conditions.