PEPE: Can the Memecoin Reverse Its Bearish Trend and Soar 30%?

Despite a 45% decline since December 2024, Pepe (PEPE) shows signs of nearing a reversal. Supported by key technical indicators and strong long-term holder confidence, PEPE could rally 30% if it sustains its current levels.

PEPE Struggles Amid Market Challenges

Since December 2024, the popular memecoin Pepe (PEPE) has suffered a staggering 45% decline in price. As of press time, the memecoin continued to face bearish trends, mirroring the struggles of major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

However, PEPE’s daily chart and on-chain metrics suggest that the downtrend may be approaching a reversal, giving traders and investors a glimmer of hope.

A Critical Pattern Indicates Reversal Potential

PEPE is currently trading near the lower boundary of a falling wedge pattern—a level where the token has historically shown strong upward momentum. Notably, PEPE has tested this boundary four times since December, each time bouncing back with impressive gains.

If this level holds, PEPE could surge by 30% to reach $0.000019 in the coming days.

Key Technical Indicators Supporting PEPE’s Price

• 200 EMA as Support:
  The 200 Exponential Moving Average (EMA) on the daily chart is acting as a crucial support level. A retest of this level often indicates a bullish trend, strengthening the possibility of an upward breakout.
• RSI Suggests Oversold Conditions:
  The Relative Strength Index (RSI) is nearing the oversold zone, signaling that PEPE may experience upward momentum as selling pressure diminishes.

On-Chain Metrics Show Mixed Sentiment

• Strong Long-Term Holder Confidence:
  According to on-chain analytics by Coinglass, long-term holders are showing robust confidence in PEPE, with exchanges recording $161.36 million worth of outflows over the past six days. These outflows suggest accumulation by investors, potentially reducing sell pressure and increasing buying demand.
• Overleveraged Positions:
  Traders have built significant long ($2.62 million) and short ($3.73 million) positions at key levels of $0.00001446 and $0.00001542, respectively. This indicates mixed sentiment, with short sellers maintaining a bearish outlook.

Trading Volume Declines Amid Price Drop

At press time, PEPE was trading at $0.00001494, down 4.50% in the last 24 hours. This decline has led to a 35% drop in trading volume, reflecting reduced participation from traders and investors.

Can PEPE Defy the Odds?

While the current sentiment remains mixed, PEPE’s ability to hold key support levels and its history of bouncing back from similar patterns suggest a potential reversal. If the memecoin maintains its momentum and breaks out of the falling wedge, it could rally 30%, offering a much-needed boost to its price and market outlook.

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