Pepe (PEPE), the popular memecoin, recently experienced a 20% price drop following a sell signal on its 12-hour chart. However, optimism is resurfacing as the TD Sequential indicator now flashes a buy signal. With PEPE trading at $0.00001745 after a slight 1.89% dip, traders are watching key levels to assess its potential recovery.
Key Resistance Levels to Monitor
PEPE has managed to hold above its critical support level of $0.00001662, making it a pivotal point for any potential upward movement. On the upside, resistance at $0.00002200 is the next key barrier. Breaking this resistance and the descending trendline will be essential to regain bullish momentum.
The Relative Strength Index (RSI) sits at 41.59, indicating that PEPE is in an oversold condition. While this could attract buyers, failure to maintain support could lead to another price drop.
Is PEPE Undervalued?
PEPE’s Market Value to Realized Value (MVRV) ratio has dropped to 41.92%, signaling a potentially undervalued token. This low MVRV ratio may attract new investors, suggesting a buying opportunity. However, undervaluation alone may not ignite a rally without broader market confidence and sustained buying pressure.
Retail and Network Activity
Daily active addresses remain modest at 4,583, reflecting steady but limited retail engagement. While transactions in the $10–$100 range surged by 66.67%, highlighting increased activity among smaller investors, a significant uptick in overall participation is necessary to drive PEPE’s price beyond its current range.
Market Imbalances and Liquidations
PEPE has recorded $410,980 in long liquidations compared to $114,550 in shorts, pointing to a market imbalance with more traders betting on price hikes. This over-leveraging could lead to increased volatility, but short-covering might provide temporary upward momentum.
What Lies Ahead for PEPE?
PEPE’s recovery hinges on breaking key resistance levels, increased network activity, and sustained buying pressure. While its oversold condition and undervaluation suggest potential opportunities, larger investors’ participation will be crucial for a meaningful rally. Traders should also remain cautious about market imbalances and potential volatility.
Disclaimer
This article is for informational purposes only and should not be considered investment advice. Always conduct your own research before making any financial decisions.
