In recent times, meme coins and the broader altcoin market have remained subdued as Bitcoin’s dominance surged above 60%.
During the last three weeks, over $44 billion has been wiped out from the meme coin sector, with Pepe [PEPE] being one of the most heavily impacted.
The frog-themed meme coin has experienced a drop of nearly 70% from its peak in December, falling to levels seen in early November 2024. This has effectively erased all the gains from the ‘Trump pump’ phase.
Despite this significant decline, the current discounted price is luring in large investors. A major player reportedly acquired 280 billion PEPE tokens, thereby increasing their holdings to $13.2 million. So, is it advisable to follow suit?
Pepe Coin Price Forecast: Can the November support level be maintained?
Looking at the 3-day chart, the retracement has returned to the level that sparked the rally in November. This price level (depicted in cyan) also acted as the peak in March 2024. With the exception of August, this level has somewhat supported PEPE from further declines in the past.
If this level holds firm once more, above $0.0000080, it could signal the bottom for PEPE. The immediate target for a rebound would be the 100-day EMA, standing at $0.000012.
The Chaikin Money Flow (CMF) indicated a potential reversal, displaying improved capital inflows although still below average. Meanwhile, the RSI on the 3-day chart was approaching oversold territory at the time of writing, yet to confirm a reversal.
However, a breach beneath the November support level could push PEPE lower towards the subsequent area below $0.000006 (outlined in white).
That said, critical on-chain metrics were predominantly bearish at the time of writing. Notably, Social Volume has been on a downward trend since December, indicating a significant decline in market interest across social platforms.
Moreover, Weighted Sentiment was negative but displayed a slight increase towards the neutral zone.
A positive sentiment, an upsurge in Social Volume, and a strong defense of the November support level could serve as indicators for a possible reversal in the price trends.