PEPE Faces Sharp Drop Amid Bearish Signals

PEPE's price has dropped significantly in the past 24 hours, continuing its recent downward trend after hitting a peak earlier this month. Momentum indicators, including the Relative Strength Index (RSI), suggest the coin is nearing oversold conditions, signaling possible further declines before a recovery. The RSI, currently below mid-levels, reflects increased selling pressure and bearish sentiment, though a rebound could occur if buyers step in.

The Market Value to Realized Value (MVRV) ratio over the past week also highlights substantial losses for short-term holders, suggesting the correction may not yet be over. Historical trends show that PEPE often reaches deeper lows on the MVRV ratio before a recovery begins, implying further downside is possible before stabilization.

Key support levels are critical for determining the coin's next major price movement. If current support fails, PEPE could see a much steeper decline. Conversely, reclaiming positive momentum could allow the coin to challenge resistance levels, paving the way for potential gains. However, resistance remains a significant barrier to any sustained recovery.

Adding to the bearish outlook, PEPE’s exponential moving averages (EMAs) have formed a bearish "death cross," where short-term averages fall below long-term averages, signaling continued downward momentum. Still, if the coin manages to break past key resistance, it could open the door for further gains.

While current market conditions are challenging, PEPE's trajectory will largely depend on whether it can hold its critical support levels or face additional selling pressure. Investors remain cautious as momentum indicators suggest more volatility ahead. The coming days will likely determine whether PEPE stabilizes or faces deeper corrections.