The cryptocurrency market has seen a modest rebound in the past 24 hours, following Monday’s sharp decline, which saw many assets drop to multi-year lows. This upswing has impacted the meme coin sector, whose market capitalization has grown by 18%.
Meme assets such as Pepe (PEPE) have seen their values climb by double digits in the past 24 hours. However, the gains may be short-lived as market volatility persists.
Pepe’s Rally Has No Major Support
At press time, the frog-themed meme coin PEPE is trading at $0.0000081. Its value has increased by 18% in the past 24 hours, and its trading volume totals $2.18 billion—a growth of 50% during the same period.
However, an assessment of the token’s price movements on a daily chart hints at the possibility of a decline in the near term. Firstly, market volatility is significantly high, evidenced by the growing gap between the upper and lower bands of the meme coin’s Bollinger Bands indicator.
Bollinger Bands measure an asset’s market volatility and identify potential overbought or oversold conditions. When the gap between the upper and lower bands of the indicator widens, it indicates increased market volatility.
A closer look at the indicator shows that PEPE currently trades below the lower band of this volatility marker. When such happens, it could signal a continuation of the downtrend.
The token’s negative Awesome Oscillator confirms this possibility. Despite the double-digit price hike in the past 24 hours, PEPE’s Awesome Oscillator has continued to post red bars.
This indicator measures an asset’s market momentum. When its bars are red, it indicates that the market is experiencing a bearish momentum. This puts PEPE at risk of shedding the gains recorded over the past 24 hours.
This is further exacerbated by the fact that the rally during that period is not backed by any significant demand for the meme coin. As of this writing, PEPE’s Relative Strength Index (RSI) is below the 50-neutral line at 39.93.
Read more: Pepe (PEPE) Price Prediction 2024/2025/2030
This indicator measures an asset’s oversold and overbought market conditions. At 39.93, PEPE’s selling pressure outweighs its accumulation.
PEPE Price Prediction: This is Why New Demand May Be Necessary
Once PEPE decouples from the general uptrend in the meme market, its price may plummet to $0.0000058 if demand remains low. This would represent a 28% fall from its current value.
Read more: Pepe: A Comprehensive Guide to What It Is and How It Works
However, if the meme coin witnessed a surge in demand and a shift in market sentiment from bearish to bullish, its price may climb to $0.0000085.
Disclaimer
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