The frog-themed meme coin, Pepe (PEPE), is catching the eye of investors as recent data indicates a rare buying opportunity. While its trading volume surged by 48% today, PEPE’s price has dropped by a significant 42% over the past 90 days, leaving short-term holders at a loss. With market sentiment shifting, where is PEPE’s price headed next?
PEPE Oversold, Poised For A Rebound?
According to IntoTheBlock, PEPE’s Market Value to Realized Value (MVRV) ratio currently stands at 1.34. The MVRV ratio helps investors gauge whether an asset is overbought or oversold by comparing the current value of tokens to their purchase price. A high MVRV ratio indicates investors have unrealized profits and may sell, while a lower ratio suggests many are holding at a loss, making them less likely to sell at reduced values.
On May 28, when PEPE hit its all-time high, the MVRV ratio peaked at 3.29, signaling a market top. Now, with a ratio of 1.34 and PEPE priced at $0.0000071, it appears the token may have hit a bottom, signaling it could be undervalued and ready for a rally.
Adding weight to this bullish outlook is the Money Flow Index (MFI), a technical indicator that measures buying and selling pressure. On September 7, the MFI dropped to 17.25, indicating that PEPE was oversold. Currently, the MFI has edged upward, hinting at the possibility of a bullish reversal.
PEPE Price Prediction: Could It Hit $0.000010?
PEPE’s price has shown signs of breaking its downtrend. Over the past weekend, the token climbed from $0.0000066 to $0.0000070. With PEPE now trading within a key demand zone, historical data suggests this zone previously pushed the token’s price as high as $0.0000087 in early August.
Analysts are closely watching the 61.8% Fibonacci retracement level at $0.0000079, which could serve as resistance. Should PEPE manage to break through this level, it might trigger a rally towards the next key area: the supply zone between $0.0000093 and $0.0000095. If PEPE surpasses this zone, a price target of $0.000010 becomes possible, representing a potential 53% increase from its current price.
Also Read: Pepe Coin Slumps 6.69% In September But Eyes 25% Surge Amid Increased Whale Activity
However, traders should be cautious. If PEPE fails to break past the $0.0000075 resistance, the bullish forecast could be invalidated, potentially sending the price back to $0.0000066.
PEPE’s recent drop, combined with technical indicators, suggests that the meme coin may be oversold, presenting a potential buying opportunity for investors. With increased trading volume and bullish signals emerging, PEPE could be primed for a price rally. However, investors should keep an eye on key resistance levels to confirm if a true reversal is on the horizon.
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.
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