Pepe (PEPE) experienced a significant 20% price correction after the TD Sequential indicator flashed a sell signal on its 12-hour chart. However, a fresh buy signal from the same indicator has reignited optimism for a potential recovery. As of press time, PEPE was trading at $0.00001745, reflecting a 1.89% decline in the last 24 hours. This price action has traders closely monitoring key resistance levels to determine whether PEPE can regain bullish momentum and avoid further consolidation.
PEPE’s ability to hold above its crucial support level of $0.00001662 remains pivotal. This price point is vital for any potential upward movement, while the next major resistance lies at $0.00002200. With the Relative Strength Index (RSI) at 41.59, PEPE is in oversold territory, potentially presenting an opportunity for buyers to accumulate. However, breaking the descending trendline is essential for confirming bullish momentum. Should PEPE fail to maintain support, it risks further downward movement.
In addition, PEPE’s Market Value to Realized Value (MVRV) ratio has dropped to 41.92%, signaling that the token may be undervalued. Most holders are currently at a loss, creating a possible buying opportunity for new investors. Despite this, a market-wide increase in confidence is required to drive a meaningful rally. Without stronger buying pressure, PEPE may struggle to maintain upward momentum.
Daily active addresses remain moderate at 4,583, indicating limited retail activity. While the surge in transactions between $10-$100 suggests growing interest among smaller investors, stronger participation from larger traders is necessary to sustain any rally. Furthermore, liquidation data reveals an imbalance in market positioning, with long liquidations significantly outpacing shorts. This imbalance could result in heightened volatility and a potential short-term upward push as short-sellers cover their positions.
PEPE’s future depends on key resistance breakouts, daily activity improvements, and increased market confidence. A decisive move above $0.00002200 could confirm bullish sentiment, while failure to hold support at $0.00001662 could lead to further consolidation.
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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