On the 4H timeframe, PEPEUSDT has delivered a sharp bullish expansion, breaking out of its prior consolidation and pushing aggressively into premium territory. This impulsive move confirms bullish strength but also leaves behind multiple Fair Value Gaps (FVGs) below, indicating clear inefficiencies in price delivery.
Currently, price is trading above the equilibrium (0.5) level, placing it in a premium zone, where buying becomes less favorable and distribution is more likely. The recent candles show loss of momentum and slight consolidation near highs, suggesting that the market may be preparing for the next phase.
There is resting buy-side liquidity above the recent highs, which has not yet been fully swept. This creates a high-probability scenario where price may push slightly higher first, targeting liquidity before reversing.
The expected ICT narrative:
Continuation → liquidity sweep → rejection → FVG fill
After taking liquidity above the highs (toward the 1.0 level), price is likely to show rejection and begin a retracement into the upper FVG, and potentially extend toward the deeper imbalance below. These zones act as magnets where price seeks to rebalance inefficiencies created during the impulsive move.
Key confluences:
Strong bullish displacement = expansion phase
Price in premium = reduced long value
Liquidity above highs = short-term target
Multiple FVGs below = strong downside draw
Execution approach:
Avoid entering longs at current levels. Instead, wait for a liquidity sweep above highs, followed by confirmation such as a lower timeframe CHoCH/BOS. This would provide a high-probability short opportunity, targeting the FVG zones below.
Invalidation occurs if price continues to hold above highs and forms bullish continuation structure, indicating strength rather than retracement.
This is not financial advice. Always manage risk appropriately.