The PEPE price has been on a wild ride recently, especially as March began. After a sharp decline, there’s a sign of life in the meme coin’s price. Today, PEPE is showing a 14% rebound, causing traders to speculate on a potential bottom. With many eyeing a possible “buy-the-dip” opportunity, let’s take a closer look at the factors driving PEPE’s price and whether this recovery can sustain itself.
PEPE Price: A Look at the Recent Rebound
PEPE’s recent performance has been a rollercoaster, with a 75% drop from its all-time high. For a coin that once dominated the meme coin market, the fall has been sharp. Now, PEPE is bouncing back. After hitting a key support level, PEPE saw a 15% jump, giving traders hope for a potential recovery.
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This price movement follows a broader trend that began in early December, but PEPE has struggled to regain its former glory. As it surpasses its pre-election lows, the meme coin market as a whole remains under pressure, affected by macroeconomic factors like recession fears and global tensions.
Despite the volatility, PEPE is still very much in the conversation. With an 18% increase in trading volume, now reaching $1.1 billion, PEPE is showing that it’s far from being forgotten in the meme coin community. But retail liquidity remains thin, and market FUD (fear, uncertainty, and doubt) is still influencing traders’ sentiment.
Is This the Buy-the-Dip Opportunity for PEPE?
For those eyeing the “buy-the-dip” opportunities, it’s important to understand the technicals behind the recent move. PEPE’s recent bounce was narrowly avoided from the breakdown of a falling wedge pattern, which had been shaping its decline. But for this potential recovery to continue, PEPE faces some serious resistance.
The first key resistance level to watch is the 20-day Simple Moving Average (SMA), which has been a consistent barrier throughout March. If PEPE can break through this level, it could signal a continuation of the uptrend. However, the technical indicators are still showing mixed signals.
The Relative Strength Index (RSI) has shown signs of life, bouncing from oversold conditions at 30. But with the RSI hovering around 44, PEPE remains in bearish territory for now. While this suggests that selling pressure has exhausted, the struggle to break into neutral territory remains.
One potentially bullish sign is the formation of a MACD golden cross. This occurs when the MACD line crosses above the signal line, indicating that buying pressure might be building. If this pattern holds, PEPE could push toward an upper resistance level, potentially reaching $0.000022—representing a 200% gain from its current price.
Are Whales Behind PEPE’s Price Rally?
As PEPE prices increase, many traders are wondering if whales are playing a role in the recovery. Recent data shows significant whale purchases that have contributed to the price surge. On March 12, three whale wallets collectively acquired 689.79 billion PEPE, worth $5 million at current prices. The largest of these purchases was made by wallet 0x7A7D, which bought 437.7 billion PEPE for 1,413.4 ETH (approximately $2.72 million).
These whale transactions have sparked speculation about the origin of the funds, as they came from Tornado Cash, a privacy tool often used to anonymize transactions. Despite the controversy, the trading activity surrounding PEPE has spiked, with 24-hour trading volume rising by 18%.
Moreover, PEPE’s futures open interest has also increased by over 7.5%, now reaching $214 million. This suggests that more traders are entering the market, and capital inflows are increasing, which could help support the price rally further.
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Will PEPE’s Bullish Trend Continue?
Looking at PEPE’s technical indicators, there’s reason to believe that the current bull action could extend. The Elder-Ray Index, which measures market strength by comparing an asset’s price to its moving average, has recently turned positive for the first time since January. A positive Elder-Ray Index suggests that bulls are in control, indicating the potential for further price increases.
If this bullish trend holds, PEPE could set its sights on the next resistance level at $0.0000083. However, if buying pressure weakens, PEPE could fall back to the $0.0000062 support level, with a potential drop to $0.0000048 as a worst-case scenario. In this case, get your shorts ready. And if you don’t know how to short, study our last shorting guide.
Final Thoughts: What’s Next for PEPE?
PEPE’s recent price rebound has brought some hope to meme coin enthusiasts. The price has bounced off a key support level, and despite facing resistance, technical indicators are showing signs of strength. However, the crypto market is highly volatile, and PEPE’s future largely depends on broader market sentiment and macroeconomic conditions.
If the current bullish momentum continues and whales remain active, PEPE could see significant gains, potentially reaching $0.000022. However, if market conditions shift or FUD persists, PEPE could retest lower levels, including the critical support at $0.0000062.
As with all meme coins, caution is advised. While the short-term outlook for PEPE looks promising, it’s important to monitor market trends closely. Investors and traders should be prepared for the volatility that is characteristic of meme coins, but with the right timing, PEPE could be in for a comeback.
If you enjoyed this blog, check out our blog on Dogecoin and speculations if it can make the Strategic Crypto Reserve from the USA.
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