After enduring a 75% decline from its all-time high, Pepe (PEPE) may finally be exiting its prolonged correction phase.
Currently trading at $0.0000070, PEPE’s price has held steady at this level throughout the week.
Key indicators suggest this could be a crucial support zone where PEPE finds stability. But if the token resists another wave of bearish pressure, what’s its next upside target?
PEPE Reversal Imminent
The Market Value to Realized Value (MVRV) Long/Short Difference shows that PEPE’s rebound could be close. It shows whether long-term holders have more unrealized gains than their short-term counterparts.
This metric can be used to spot the beginning of a bull cycle or the drop into a bear market, as well as the top and bottom. When the reading is positive, it means long-term holders have more profits, which is bullish.
On the other hand, a negative rating indicates dominance of unrealized losses. As of this writing, PEPE’s MVRV Long/Short Difference is -25.45%, which means PEPE’s price is in a bearish phase.
However, this bearish condition does not necessarily imply that the memecoin’s value will continue to sink. Rather, it indicates that the bottom is near and a major bounce — close.
Looking at the historical data above, PEPE’s price bounced from the lows when the MVRV Long/Short Difference was 38.66%.
Therefore, if history repeats itself and the broader market condition improves, the cryptocurrency might evade another correction.
Support Holds Strong
The In/Out of Money Around Price (IOMAP) also seems to agree with this position since it spots support and resistance levels.
According to IntoTheBlock data, the major support for the frog-themed memecoin is around $0.000070. Here, 5,910 addresses purchased 19.35 trillion tokens.
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This volume is higher than that of those in unrealized losses who bought around $0.000080. Therefore, as it stands, PEPE is unlikely to experience any major selling pressure.
So, if buying pressure comes into play at any point from now, the price might breach $0.000080 and trade higher.
PEPE Price Analysis: Breakout Ready
On the daily chart, PEPE’s price broke out in a descending channel, dragging the price down from $0.000020 to $0.000056. The rise above the channel’s upper trendline is a bullish sign, indicating that the memecoin could be leaving bears in the dust.
Concurrently, the Chaikin Money Flow (CMF) is flirting with the zero signal line, indicating rising accumulation. Likewise, the Money Flow Index (MFI) is also showing signs of growing past the midpoint.
Once this happens, PEPE could have a clear path toward higher highs. Based on the Fibonacci levels, this could see the rise to $0.000010 at the 0.236 Fibonacci level. If validated, PEPE’s price could climb as high as $0.000014.
Alternatively, if the token falls below the upper trendline of the falling channel, this breakout might not happen. Should that be the case, PEPE might drop to $0.000053.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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