The cryptocurrency market has witnessed a mix of trends recently, transitioning sharply from a bullish outlook to a more cautious, bearish stance. In this changing landscape, meme coins like Pepe [PEPE] have experienced a decline in trading activity as attention shifts back to Bitcoin [BTC].
Despite this shift, technical indicators are pointing towards a possible rebound for PEPE, with trading volume reaching $2.6 billion.
TD Sequential Buy Signal Suggests Potential Rebound
Key technical analysis tools are now indicating a probable reversal for PEPE. On the daily chart, the TD Sequential indicator has triggered a buy signal, traditionally viewed as an indication of an impending price change.
Historically, such signals have often been followed by upward price movements, capturing the attention of traders who anticipate a recovery.
PEPE’s latest trading value was at $0.00001791, showcasing a 2% uptick in the last 24 hours. However, the coin remains down by 25.97% over the previous week.
Over the past week, PEPE has traded within the range of $0.00001455 and $0.0000242, with traders closely monitoring the $0.00002201 resistance level. Bollinger Bands also highlight crucial levels that need to be breached for a sustained rally.
Decrease in Whale Activity Following November Surge
Data from IntoTheBlock illustrates a notable decrease in significant transaction activity involving PEPE. In mid-November, there was a spike in substantial transactions coinciding with a $0.000024 price peak, hinting at whale or institutional engagement.
Subsequently, transactions have dwindled, with only 240 significant transactions recorded in the last 24 hours, representing the lowest activity within the week.
This decline aligns with the coin’s consolidation around $0.00001791, suggesting a phase of accumulation or reduced trading enthusiasm. Analysts believe tracking large transaction activity could offer insights into potential breakouts or continued downward movements.
On-Chain Metrics Highlight Critical Price Levels
On-chain examination reveals that 73.60% of PEPE wallets are currently profitable, with a strong support area established between $0.000011 and $0.000013, where most holders acquired the token.
However, around 22.44% of wallets are in a loss-making position, indicating expected resistance between $0.000019 and $0.000022, as these holders might look to sell to recover their losses.
Further, Bollinger Bands emphasize crucial thresholds, with the lower band at $0.00001593 serving as a support level and the upper band at $0.00002201 marking a resistance point.
A breakthrough above the upper band could trigger upward momentum, while a drop below the lower band could result in further price corrections.
Indicators Point Towards Weakening Bearish Sentiment
Momentum indicators are hinting at a potential reduction in the ongoing downtrend. The MACD histogram reflects a contraction, suggesting a likely bullish crossover.
Meanwhile, the RSI stands at 41.51, below the neutral 50 mark but not in oversold territory. An upward move past 50 could signal renewed buying interest.
Given the current market stability, the confluence of a TD Sequential buy signal, on-chain metrics, and technical indicators implies that PEPE might be gearing up for its next significant move.