PEPEUSDT | Bearish Displacement — FVG Retrace Before SSL Sweep

On the 4H timeframe, PEPEUSDT is showing a clear bearish shift in market structure following a strong impulsive move to the downside, confirming sellers are in control.

The key event here is a decisive bearish displacement that resulted in a Break of Structure (BOS), taking out prior lows and signaling continuation. Before this move, price was consolidating around mid-range, forming relatively equal highs — a likely pool of Buy-Side Liquidity (BSL) that was engineered and then used to fuel the sell-off.

This price action aligns well with ICT’s Power of 3 model: accumulation near equilibrium, manipulation into minor highs, and then distribution through a strong bearish expansion. The displacement left behind a clean Fair Value Gap (FVG) around the 0.5 equilibrium level, which now acts as a key area of interest.

Currently, price is trading near the lows, potentially building short-term Sell-Side Liquidity (SSL). I expect a corrective retracement into the FVG zone, which sits in a premium area relative to the recent leg down. This provides a high-probability zone for bearish continuation.

For execution, I would look for price to retrace into the FVG and form a lower timeframe Change of Character (CHoCH) or clear rejection before entering short. This would align with the current bearish order flow and inefficiency seeking behavior.

Targets are set below the current range, aiming for a sweep of external SSL resting under recent lows, with potential continuation if momentum persists.

Invalidation would be a strong bullish move reclaiming and holding above the FVG, suggesting a potential shift in order flow.

This is not financial advice. Trade at your own risk.