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PEPE, the popular memecoin, recently faced a major price correction, with its value dropping by over 20% within a week. However, in the last 24 hours, the token has shown signs of recovery, climbing over 10% to trade at $0.00001876. This bounce-back has sparked speculation about whether PEPE can sustain this momentum and potentially trigger a full-fledged rally.

Signs of Recovery

PEPE’s trading volume surged by 39% during the same period, exceeding $5 billion. This increase in trading activity alongside the price hike often signals bullish sentiment, hinting at the possibility of further upward movement. Memecoins, known for their volatility, are highly susceptible to market trends and investor sentiment. While these tokens are prone to sharp declines during market corrections, they often rebound impressively in favorable conditions.

Adding to the optimism, data from Santiment indicates rising buying pressure on PEPE. A notable increase in its supply outside exchanges and a concurrent drop in supply on exchanges underscores growing confidence among investors. This shift typically aligns with price increases as buyers hold onto tokens in anticipation of gains.

Challenges Ahead

Despite these positive signals, not all indicators are aligned for a sustained rally. The fear and greed index, currently at 24%, places the market in the “extreme fear” category. Historically, such phases have sometimes acted as catalysts for price recoveries. However, PEPE faces headwinds from whale activity, as top holders appear to be offloading their tokens. A decline in whale holdings could introduce selling pressure, potentially curbing the memecoin’s upward trajectory.

Technical indicators further complicate the outlook. While the Relative Strength Index (RSI) shows an uptick, reflecting growing buying pressure, the MACD (Moving Average Convergence Divergence) suggests a bearish trend. This mixed signal implies that while PEPE’s recovery may persist in the short term, another correction cannot be ruled out.

What’s Next?

PEPE’s ability to sustain its recovery hinges on broader market conditions and investor sentiment. While the current uptick is promising, traders should remain cautious given the conflicting indicators. The coming days will be critical in determining whether PEPE can regain its bullish momentum or face another setback.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Pepe Coin (PEPE) Price Surge: Why This Resilient Meme Coin Could Be the Next Big Breakout