Pepe, the popular meme coin, has recently experienced a surge in price, with an 8% increase in the last week and a notable 9% jump in the past 24 hours. However, despite these gains, technical indicators suggest a bearish sentiment may be on the horizon.

The Relative Strength Index (RSI) and Awesome Oscillator (AO) are currently signaling a potential downtrend. The RSI is trading just below the 50 level, indicating uncertainty in price momentum and a lack of confirmation for a trend reversal. Similarly, the AO remains below its mean level of zero, suggesting that momentum continues to favor the bears.

Adding to the bearish outlook, PEPE's price has breached its ascending trendline support, a crucial technical level that previously provided stability. This breach, coupled with increased profit booking by investors, has contributed to the current bearish trend.

IntoTheBlock data reveals that approximately 26% of active addresses holding PEPE tokens are profitable, leading to heightened selling pressure as investors seek to capitalize on their gains. However, it's worth noting that a significant portion of PEPE holders, around 77.58%, remain profitable despite the recent downturn, with many acquiring their tokens in the $0.000002-$0.000003 range.

The In/Out of the Money Map (IOMAP) reflects this selling pressure, with many addresses purchasing PEPE at an average price of $0.0000110. If the price approaches this level, a significant resistance zone may form as investors look to recover their initial investment.

On-chain analysis further supports the bearish sentiment, with a 24% drop in Daily Active Addresses over the past seven days, indicating reduced interest and activity within the broader crypto community. This decline in network activity is concerning, as sustained engagement is crucial for maintaining prices and encouraging recovery.

Despite the bearish indicators, PEPE's price action near key support and resistance levels offers a glimmer of hope. The coin is currently trading marginally above a critical support line at $0.00001020, which has been a battleground between bears and bulls. If this support holds, PEPE could potentially recover recent losses and target resistance levels at $0.000013 and $0.000014.

However, a breakdown below this support could trigger a significant sell-off, with the next key support level around $0.00000870. Failure to maintain the current support could lead to a swift decline toward this lower threshold.

In conclusion, while PEPE has experienced a recent price surge, technical indicators and on-chain analysis suggest a potential downward trend may be on the horizon. Investors should closely monitor the coin's price action and key support and resistance levels to make informed decisions about their investments.