PEPE hit a new all-time high on November 13 after its Coinbase listing, marking a 105% surge in the past month. However, it has dropped nearly 10% over the last week. Key indicators, such as RSI and MVRV, suggest the coin may face further corrections as bullish momentum fades.
Is PEPE Oversold Yet?
PEPE’s Relative Strength Index (RSI) has dropped to 38.8, down from 60 in just three days.
- What RSI Tells Us:
- RSI measures price momentum on a scale from 0 to 100.
- Readings above 70 indicate overbought conditions, while below 30 signals oversold levels.
This decline reflects growing selling pressure. However, PEPE is not yet oversold, as the RSI remains above the 30-mark. Historically, PEPE’s RSI hasn’t dipped below 30 since November 3, which suggests the price might stabilize soon if trends hold.
Despite the drop, PEPE remains the third-largest meme coin, trailing only Dogecoin (DOGE) and Shiba Inu (SHIB).
If the RSI falls below 30, stronger bearish momentum could emerge, leading to deeper corrections.
MVRV Ratio Signals Room for Correction
PEPE’s 7-day Market Value to Realized Value (MVRV) ratio is at -6.2%.
- What MVRV Means:
- MVRV shows the profit or loss of holders based on the current market value compared to their purchase price.
- Negative levels suggest holders are less likely to sell at a loss, reducing selling pressure.
Historically, PEPE has rebounded strongly when its 7-day MVRV dipped below -9.7%. This indicates a further correction might occur before a bullish recovery.
If the MVRV trends lower, it could trigger accumulation and set the stage for a price rebound.
Price Prediction: Can PEPE Hit New Highs?
PEPE’s EMA lines indicate bearish momentum, with a potential death cross forming. A death cross occurs when short-term EMAs cross below long-term ones, signaling potential sell-offs.
- Key Support Levels:
- Initial supports: $0.0000139 and $0.0000108.
- Strong support: $0.0000077 if selling intensifies.
- Bullish Scenario:
If sentiment improves, PEPE could challenge resistances at $0.0000228 and $0.000026. Breaking these levels might push the price to $0.000030, creating a new all-time high.
Conclusion
PEPE’s recent highs and market corrections showcase its volatility. While bearish signals dominate for now, historical trends hint at a potential recovery. Investors should monitor key levels to gauge PEPE’s next move.
