PEPE Price Analysis

• PEPE breached a multi-year support level and could repeat its rally move from the previous year.
• Spot traders keep accumulating; however, selling pressure in the derivatives market remained high.

In the past 24 hours, Pepe (PEPE) has declined by 6.03%. As selling pressure increased, its weekly loss dropped to 26.02%, with a monthly downturn of 31.88%.

Despite this sluggish market performance, bullish positions have appeared on the chart, suggesting a price boom could be on the way. AMBCrypto has analyzed this potential.

PEPE: Historical Rally Point Breached

The chart shows that PEPE has broken a one-year support level that previously facilitated price recovery. Significant pressure is evident at this level, as seen during PEPE’s last trades, which led to a 348% rise.

This recent support-level breach might indicate a stop hunt, where investors intentionally push prices lower to trigger stop-loss orders before quickly buying more of the asset, leading to a rally.

In April 2024, PEPE breached this support level resulting in a 338.9% bounce. A similar scenario might occur now, albeit the bounce could lead to a further drop, potentially reaching the lower support of $0.00000399, after which PEPE may resume an upward trend.

The Relative Strength Index (RSI) measures overbought (above 70) and oversold (below 30) conditions. PEPE recently exited the oversold region with a current RSI reading of 31.87, trending higher.

If this trend persists, it could signal the onset of a PEPE rally. The last two RSI cycles indicate that sellers are not fully exhausted, leading to slight price increases before subsequent drops. If this pattern continues, PEPE’s RSI bounce may be temporary.

A sustained rally would require the RSI to significantly exceed the last three circled points, indicating sellers are fully exhausted, allowing buyers to re-enter the market.

Spot Market Interest

In the spot market, investor interest in PEPE remains strong. Over the past week, traders collectively purchased $53.11 million worth of PEPE, marking the highest weekly purchase since January when over $85 million was bought.

AMBCrypto’s analysis suggests some bullish sentiment in the market, though sellers in the futures market continue to bet on a price decline.

Futures Market Signals Heavy Selling Pressure

At the time of writing, the Futures’ Open Interest (OI) Weighted Funding Rate has dropped to a historic level of -0.0297, the lowest since its inception.

A significant negative OI-weighted funding rate indicates that sellers heavily dominate the market. This metric combines OI with the Funding Rate to determine potential trends in the derivatives market.

With trading volume rising by 91% to $574.57 million while prices plummet, this suggests that the ongoing selling is supported by high momentum.

If this trend continues, PEPE could fall further, potentially reaching its lower support bound.