PEPE price, which sent ripples across the meme coin market with its recent correction, is now looking to bounce back.
However, the conditions are not highly favorable for a recovery as the meme coin continues to face bearish cues.
PEPE Recovery Is Skeptical
Rising gradually in the PEPE price is certainly a good sign, but for this positive development to be sustained, several other factors would need to be bullish. Unfortunately, this is not the case with the meme coin right now.
The Relative Strength Index (RSI) is the first of these. The RSI is a momentum oscillator that measures the speed and change of price movements.
It is typically used to identify overbought or oversold conditions in a market. It ranges from 0 to 100, with values above 70 indicating overbought conditions and below 30 indicating oversold conditions.
Given the indicator, despite the slight uptick, it is still under the neutral line at 50.0. If PEPE manages to flip it into support, a potential recovery rally could be confirmed. Until then, the chances of a drawdown loom over the meme coin’s head.
Read More: Pepe: A Comprehensive Guide to What It Is and How It Works
In addition, PEPE faces the threat of profit booking at the hands of investors. Observing the active addresses by profitability, we notice that about 26% of the participating investors are in profit.
This is not a good sign, as investors in profit usually conduct transactions to book profits. They lean towards selling their holdings, and their concentration above 25% confirms this. Consequently, PEPE is at risk of a continued decline, bolstered by profit-taking.
PEPE Price Prediction: Reclaiming Key Support
PEPE’s price, at $0.00001173, is only slightly above the support line at $0.00001146. Until last week, the meme coin was hovering under this line, nearly slipping below $0.00001007.
This level has previously been tested and provides strong support and resistance. Therefore, PEPE needs to sustain its presence above this line to have any chance of making back the profits it recently lost.
Read More: Pepe (PEPE) Price Prediction 2024/2025/2030
However, if support is lost, a massive drawdown is very likely. The meme coin could fall considerably to test the support at $0.00000775, invalidating the bullish thesis and extending the losses.
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