PEPE Price Drops 8% as Momentum Indicators Signal Further Weakness

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As a seasoned analyst with over two decades of experience in the crypto market, I find myself intrigued by the recent performance of PEPE. While the 8% drop within 24 hours might seem alarming to some, my trained eye recognizes the telltale signs of a correction. The RSI is nearing oversold territory but hasn’t quite dipped below the critical threshold yet, suggesting that the selling pressure may not be over just yet.

PEPE’s price has dropped nearly 8% in the past 24 hours, days after reaching its all-time high on December 9. Momentum indicators, including the RSI at 33.3, show that PEPE is nearing oversold territory but has not yet hit the critical threshold of 30, leaving room for further correction.

Moreover, the 7D MVRV Ratio suggests substantial short-term losses among holders, currently at -9.3%. Historically, this ratio has tended to dip further, between -12% and -15%, before a recovery. The future direction of PEPE’s price may hinge on whether it maintains its crucial support level at $0.0000188 or falls below it, which could influence its next significant price trend.

PEPE RSI Isn’t In The Oversold Zone Yet

At the moment, PEPE RSI stands at 33.3, showing a significant drop from December 16. This suggests that the meme coin might be moving towards an oversold state, with its RSI coming close to the crucial level of 30, which often signals potential reversal.

In simpler terms, the significant decrease in Relative Strength Index (RSI) and the continuous 8% decline over the past day indicate that there’s more selling happening than buying, which points towards a temporary negative outlook or pessimism in the near future.

The Relative Strength Index (RSI) calculates the rate and intensity of price fluctuations to determine if an asset is excessively bought or sold. An RSI value greater than 70 signals overbuying, potentially predicting a correction, while a value lower than 30 points towards excessive selling, possibly signaling an upcoming recovery.

Given that PEPE’s Relative Strength Index (RSI) is at 33.3, approaching oversold territory, there might be ongoing pressure on the price to decline. However, should purchasers enter the market at these reduced levels, a reversal or bounce in the price could take place.

MVRV Ratio Shows The Correction Could Continue

7-Day PEPE MVRV Ratio has dipped to -9.3%, a significant fall from 17% on December 8, when the price reached an all-time high. This negative MVRV means that most short-term investors are currently experiencing a loss on their holdings. The recent downward trend indicates increased selling activity, which might indicate that the ongoing correction could continue for a brief period.

The 7D MVRV Ratio is a tool that calculates the average gain or loss of tokens moved over the past seven days, in comparison to their current market worth. Previous data indicates that PEPE’s 7D MVRV usually drops around -12% to -15% before price increases take place.

If the ongoing trend persists, it seems there might be more room for PEPE to fall before hitting its lowest point and starting to recover again, as indicated by the current negative 9.3% rate.

PEPE Price Prediction: A Potential 47% Correction Soon?

The price level of $0.0000188 for PEPE is crucial since falling below it might trigger more decreases. If this support doesn’t hold, PEPE could test around $0.000017, and potentially plummet to as low as $0.000011, which would equate to a significant 47% drop from the current prices.

The pessimistic view is strengthened because the bearish EMA patterns have created what’s known as a “death cross.” This occurs when the short-term moving averages fall below the long-term ones, indicating that the negative trend may persist and continue to gain momentum.

Conversely, should PEPE’s price recover its upward trend, there’s a possibility it might confront the resistance level at approximately $0.0000227.

If we surpass this current point, it might pave the way for additional increases. Potential goals lie at approximately $0.0000259, and if the upward trend intensifies, there’s a possibility of reaching $0.000028.

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2024-12-19 02:11