- PEPE experiences a notable price decline, dropping by over 21% within a week.
- The memecoin forms a bullish falling wedge pattern, indicating a potential rebound.
- A cryptocurrency analyst points out the possibility of a significant rally as the price approaches its 200-day SMA.
PEPE’s recent price action has caught the attention of investors, hinting at a possible resurgence.
PEPE Struggles but Potentially Gears Up for a Rally
In the past week, PEPE coin faced a sharp decline of over 21%, according to CoinMarketCap. Once known for its high profitability among holders, the recent downturn has left only 67% of investors in profit. This decrease in price affected the coin’s Market Value to Realized Value (MVRV) ratio, though its weighted sentiment unexpectedly remained positive, suggesting ongoing bullish sentiment.
Reasons Behind the Bullish Sentiment
A factor contributing to this optimism is the memecoin’s positioning near a crucial support level. Plazma, a well-regarded crypto analyst, highlighted that PEPE might soon initiate a large-scale rally as its price aligns closely with the 200-day Simple Moving Average (SMA). Historically, similar conditions led to a significant increase in the coin’s price, even pushing it to an all-time high (ATH) last April.
Current Market Sentiment and Future Outlook
The memecoin showcased a slight recovery within the past 24 hours, with its price surging by 14%, currently trading at $0.00000915 and a market capitalization of $3.85 billion. Our analysis hints at a potential bullish falling wedge pattern on the chart, indicating that if PEPE successfully tests the lower limits of this pattern, a rally could ensue, possibly retesting its ATH in the coming weeks.
Short-Term Projections and Expectations
Looking at short-term prospects, data from Hyblock Capital suggests various price scenarios. Should PEPE maintain its bullish trend, it could recover fully from the previous week’s losses, aiming for a price of $0.000012. Conversely, should bearish pressures resurface, PEPE might drop to $0.00000727.
Conclusion
In summary, despite a challenging week, PEPE’s current technical patterns and market sentiment present a potential for a rebound. Investors are advised to monitor these developments closely, as the memecoin could either recover its recent losses or face further declines, depending on market dynamics.
