Introduction
Pepe has had a tough start this year. The token dropped by 20% after hitting a sell signal on its chart. However, there’s still hope as a new buy signal has appeared. At the moment, PEPE is trading at $0.000017526, which is 1.8% lower than yesterday. Traders are now watching key levels to see if it can bounce back or if it might drop further.
PEPE Important Support and Resistance Levels
PEPE is sitting close to its support level at $0.00001662. This level is important because it can stop prices from dropping further. On the other side, It faces resistance at $0.00002200. If PEPE can break past this resistance, it could gain more momentum. The RSI (Relative Strength Index) is at 38.9, meaning the token might be oversold. This could attract buyers, but breaking above the resistance line is necessary to start a recovery. If It fails to hold the support level, it might drop even more.
MVRV Ratio Shows PEPE May Be Undervalued
The MVRV ratio for PEPE is at 41.92%, which means the token might be undervalued right now. Many people holding It are currently at a loss. This could be a good opportunity for new buyers to enter the market. However, just being undervalued is not enough. It will need stronger market confidence and more buyers to push its price up.
Retail Activity Sends Mixed Signals
PEPE has 4,583 daily active addresses right now. This shows that while people are still using the network, the activity isn’t very high. On the bright side, smaller investors have been more active lately, with a 66.67% increase in transactions worth $10 to $100. This shows growing interest from smaller buyers. But for It to recover strongly, larger investors (whales) need to step in and drive demand.
Liquidations Show Market Struggles
PEPE has seen $410.98k in long liquidations compared to $114.55k in short liquidations. This means that more people were betting on price increases, but some of these bets didn’t work out, causing losses. These imbalances can create more volatility in the market. If short-sellers start closing their positions, It might get a small price boost. However, real recovery will depend on more buyers entering the market.
What’s Next for PEPE?
PEPE has some positive signs, like the buy signal and increased activity from small investors. But for a true recovery, it needs to break the $0.00002200 resistance level. If it fails to do so, or if it loses the $0.00001662 support level, It could see more price drops. For now, It’s future depends on stronger demand and better market confidence.
