Will PEPE Coin Make a Comeback as Meme Coin Sentiment Hits New Heights?

The meme coin landscape, particularly for PEPE Coin, is filled with conflicting signals as sentiment around meme coins fluctuates.

As PEPE struggles to recover from recent selloffs, many are wondering if the bulls can make a comeback this week, despite significant obstacles.

Struggling to Bounce Back

PEPE Coin, a popular meme cryptocurrency, has faced a tough week. After a significant drop, it has failed to generate enough momentum for a recovery. The coin’s price action has given up all of its gains from November 2024, signaling waning investor confidence. Over $7 million worth of liquidity has flowed out of the coin, contributing to a bearish sentiment that many analysts have observed in both spot and derivatives markets.

PEPE has dropped more than 60%, falling from its all-time high of $0.000028 to $0.00001. Source: BOBO via X

Despite these challenges, some observers remain hopeful that PEPE’s price could bounce back. “The absence of a strong recovery could be a sign that PEPE is still struggling to find its footing,” says crypto analyst Carl Moon. “However, market dynamics can shift quickly, especially with meme coins that are highly volatile.”

A Mixed Market for Meme Coins

PEPE Coin’s struggles aren’t unique. Larger meme coins like Dogecoin and Shiba Inu are also finding it difficult to sustain bullish momentum. Despite these setbacks, there remains a bubbling excitement around meme coins, driven by new listings like TST on Binance. This has led to some hoping for a resurgence in meme coin popularity.

However, some experts believe that the market is shifting. “Liquidity is starting to flow toward altcoins with real utility,” says Moon, suggesting that meme coins may have reached their peak. The Federal Reserve’s tightening measures may also be influencing sentiment, as the flood of liquidity that benefited meme coins has slowed.

Can PEPE Still Shine?

This skepticism does not prevent PEPE Coin from having one of the strong positions amongst other coins that play in the same space. For now, the market cap stands above $3.7 million, considering the bigger sizes of meme coins out there. The question which still may be begged is the capability of remaining so in a possible downturn demand for meme coins.

Pepe Coin (PEPE) was trading at around $0.000010, up 6.81% in the last 24 hours at press time. Source: Brave New Coin

On the bright side, recent losses have sent PEPE into oversold territory. Historically, this has been a precursor to rebound events. The Relative Strength Index (RSI) for PEPE is currently near 32, indicating that the coin might be ripe for a reversal. Analysts have pointed to similar past occurrences where oversold conditions led to sharp recoveries.

Watch – Pepe Price Analysis

Short Liquidations Could Trigger a Rebound

Another factor that could fuel a PEPE rally is the potential for short liquidations. With large sell-side positions being closed out, the coin could see a surge in price as short traders are forced to cover their positions. “A short squeeze could easily trigger a strong price rebound,” says another market observer. If buy-side liquidity picks up, PEPE could see a rapid recovery, potentially leading to a 110% rally.

Support Levels and Potential Upside

The key technical indicators place PEPE Coin at important support levels that may be crucial to its recovery. At the time of writing, the coin trades around $0.00000952, briefly touching a local low of $0.000008459. This area has been historically important in shaping the price action for PEPE.

Pepe Coin (PEPE) is expected to plot a bullish breakout above the $0.000010 resistance to initiate a potential uptrend ahead. Source: TraderAAG on TradingView

The MACD indicator has also given signals for a possible bullish crossover, further cementing the chances of a trend reversal. As analysts believe, if PEPE manages to surge above the resistances at $0.000012, $0.000015, and $0.00002, the coin has the chance of surging 110% from the current price.

Looking Forward: Uncertainty but Hope for PEPE

The future of PEPE Coin remains uncertain, with mixed signals coming from the market. While some analysts predict a continued decline in meme coin interest, others are hopeful that PEPE’s oversold conditions and strong support levels could spark a bullish rally. As meme coin sentiment fluctuates, PEPE Coin’s performance this week could provide crucial insight into whether meme coins still have the potential for significant gains or if their time has passed.