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PEPE Price Recovery Delayed Despite Preventing a Major Drop

2 mins
Updated by Lynn Wang
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In Brief

  • PEPE's price has bounced back from falling below $0.00001000 to reclaim the lost profits.
  • The RSI is still under the neutral mark, which means recovery is yet to be confirmed.
  • Investors in profit appear to be dominant among the active addresses signaling profit booking.
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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

PEPE RSI. Source: TradingView

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 Active addresses by Profitability.
PEPE Active addresses by Profitability. Source: IntoTheBlock

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

PEPE Price Analysis.
PEPE Price Analysis. Source: TradingView

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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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...