PEPE Faces Correction After Recent Surge
PEPE sees a price correction after a strong surge, with key indicators suggesting continued bearish pressure but potential for recovery ahead.
PEPE’s recent surge has captured attention, climbing significantly over the past month. However, the last week has seen a noticeable decline, raising concerns about whether the correction will continue or if the token can regain its upward momentum. Indicators like RSI and MVRV suggest that bearish pressure may persist for now.
PEPE’s Relative Strength Index (RSI) has dropped sharply, reflecting weakening bullish momentum. The RSI measures price momentum, with values indicating whether an asset is overbought or oversold. Currently, PEPE’s RSI suggests selling pressure is growing, though it has yet to reach oversold territory. Historically, stabilization or recovery often follows such levels, but a deeper dip could lead to more pronounced bearish trends.
Another key indicator, the Market Value to Realized Value (MVRV) ratio, also hints at ongoing challenges. The metric, which measures the profit or loss of recent token holders, shows that many are at an unrealized loss. This could reduce immediate selling pressure since holders are less likely to sell at a loss. However, if the MVRV dips further, it may create conditions for renewed accumulation, setting the stage for a potential recovery.
Technical analysis reveals a possible "death cross" forming in PEPE’s Exponential Moving Averages (EMA)—a bearish signal where short-term trends fall below long-term ones. If this pattern materializes, it could trigger further declines, testing key support levels. Conversely, if market sentiment improves, PEPE may recover and challenge resistance points. Breaking through these levels could reignite bullish momentum and potentially drive the token toward new highs.
For now, the market remains uncertain. While bearish signals dominate, there are also opportunities for recovery if the token stabilizes and investor confidence returns. Whether PEPE consolidates or experiences further corrections will depend on how the market responds in the coming days. The token’s ability to hold critical levels and reverse trends will determine its trajectory moving forward.
