- PEPE Price Correction and Recovery Signals: After a 20% price drop on January 4, PEPE is now showing signs of recovery as the TD Sequential indicator flashes a buy signal.
- Current Price and Resistance Levels: PEPE is trading at $0.00001745, with critical support at $0.00001662 and resistance at $0.00002200.
- Oversold Conditions: The Relative Strength Index (RSI) at 41.59 suggests PEPE is oversold, potentially creating an opportunity for buyers.
- MVRV Ratio Indicates Undervaluation: PEPE’s MVRV ratio at 41.92% signals undervaluation, but stronger market confidence is needed for a rally.
- Retail Activity and Transactions: Daily active addresses remain moderate, but smaller transactions have surged by 66.67%, indicating growing retail interest.
- Market Imbalances and Liquidations: Long liquidations outpace shorts, highlighting market imbalances and potential volatility.
PEPE’s Price Correction and Recovery Potential
On January 4, PEPE experienced a sharp 20% price correction after the TD Sequential indicator on its 12-hour chart signaled a sell. This drop brought the token to a critical juncture, with traders closely monitoring its next moves. However, the same indicator has now flashed a buy signal, sparking optimism for a potential rebound.
At the time of writing, PEPE was trading at $0.00001745, reflecting a 1.89% decline over the past 24 hours. Despite this, the token has managed to hold above its crucial support level of $0.00001662. This support is pivotal for any upward momentum, as a failure to maintain it could lead to further consolidation or even another downward leg. On the other hand, breaking through the resistance at $0.00002200 could confirm a bullish reversal.
Oversold Conditions and Key Resistance Levels
PEPE’s Relative Strength Index (RSI) currently sits at 41.59, indicating that the token is in oversold territory. This metric suggests that sellers may have overextended, creating an opportunity for buyers to accumulate. However, for a sustained recovery, PEPE must break its descending trendline and overcome the $0.00002200 resistance level.
If the token fails to maintain its support at $0.00001662, it risks further price declines. Traders are watching these levels closely, as they will determine whether PEPE can regain bullish momentum or remain trapped in a consolidation phase. The next few days will be critical in shaping the token’s short-term trajectory.
Undervaluation and the MVRV Ratio
PEPE’s Market Value to Realized Value (MVRV) ratio has dropped to 41.92%, signaling that the token is significantly undervalued. This metric indicates that most holders are currently at a loss, which could attract new investors looking for a favorable entry point. Historically, such undervaluation has often preceded price recoveries, as it suggests the asset is trading below its fair value.
However, undervaluation alone is not enough to drive a rally. For PEPE to capitalize on this opportunity, it needs stronger market confidence and increased buying pressure. Without these factors, the token may struggle to sustain any upward momentum, even if it experiences short-term price gains.
Retail Activity and Transaction Trends
Daily active addresses for PEPE remain moderate at 4,583, reflecting steady but unremarkable network engagement. This limited activity from retail traders could hinder short-term price growth, as increased participation is often necessary to drive demand and push prices higher. A surge in active addresses would signal renewed interest in the token, potentially sparking a rally.
Interestingly, transactions in the $10–$100 range have increased by 66.67%, highlighting growing activity among smaller investors. This surge in retail-driven transactions suggests that PEPE is attracting attention from a broader audience, even as higher-value transactions remain subdued. While this retail interest could provide short-term support, participation from larger investors will be crucial for sustained growth.
Market Imbalances and Liquidation Trends
PEPE’s recent liquidation data reveals significant market imbalances. The token recorded $410.98k in long liquidations compared to $114.55k in shorts, indicating that more traders have been betting on price increases. This imbalance suggests heightened volatility, as over-leveraged positions could lead to sharp price swings.
As short-sellers cover their positions, PEPE may experience a temporary upward push. However, sustained momentum will depend on broader market conditions and the ability of buyers to maintain pressure. Without a significant increase in demand, any recovery could be short-lived.
Conclusion: Can PEPE Reignite Momentum?
PEPE’s current market conditions present a mixed outlook. On one hand, the buy signal from the TD Sequential indicator, the oversold RSI, and the undervalued MVRV ratio suggest potential for recovery. Additionally, the surge in smaller transactions indicates growing retail interest, which could provide short-term support.
However, key challenges remain. Daily active addresses are still moderate, and breaking through the $0.00002200 resistance level is critical for confirming bullish sentiment. At the same time, failure to hold the $0.00001662 support could lead to further consolidation or declines.
For PEPE to regain momentum, it will need stronger market confidence, increased participation from both retail and institutional investors, and sustained buying pressure. The coming days will be crucial in determining whether the token can overcome these hurdles and chart a path toward recovery.
