Is PEPE Gearing Up for a Rebound Despite 20% Decline?

• PEPE forms bullish ascending channel, nearing key resistance levels.
• On-chain metrics indicate whale activity and long-term holder optimism.

Pepe (PEPE), the world’s third-largest memecoin by market cap, is currently trading at $0.00001929, marking a 10% decline in the past 24 hours. The trading volume, however, surged by 66% during the same period, indicating heightened market activity. Over the past week, PEPE has dropped by 22%, reaching a 22-day low of $0.00001944 hours ago. Notably, it hit an all-time high (ATH) of $0.00002825,10 days ago.

Technical analysis suggests that PEPE has formed an ascending channel pattern, a bullish signal characterized by higher highs and higher lows. Key resistance levels (R1 and R2) are at $0.00002166 and $0.00002473, respectively, while support levels (S1 and S2) lie at $0.00001730 and $0.00001568. The daily Relative Strength Index (RSI) is at 43, suggesting that PEPE is nearing oversold territory, potentially setting the stage for a rebound.

Moreover, On-chain metrics bolster this bullish outlook. Coinglass data reveals that exchanges have recorded $15 million worth of outflows over the past two trading days. Such movements typically indicate that long-term holders and whales are transferring assets to private wallets. It signals optimism about the token’s future.

Analysts Take On PEPE Path

Amid the mentioned positive signs, the PEPE price has exhibited a mixed technical picture. The daily chart has shown bearish indicators, including the invalidation of a falling wedge pattern. And there is the emergence of a “three red crows” formation, which suggests sustained selling pressure.

The broader cryptocurrency market remains uncertain as investors react to Federal Reserve decisions on interest rates, which impact risky assets like cryptocurrencies. Nansen data indicates declining participation from “smart money” traders. It is with their PEPE holdings dropping from 8 trillion tokens last month to 7.5 trillion.

In conclusion, analysts suggest that PEPE’s technical and on-chain metrics hint at potential upside momentum, bearish trends, and market uncertainties present significant risks.

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