📉 PEPE's upward momentum may be facing stagnation, and a short-term correction is imminent?
🚨 Technical indicators and on-chain data suggest a potential pullback Recent data shows that the meme coin PEPE could face a 20% pullback with a target price of $0.0000130 to retest the average level.
🔍 Key Resistance and Support Levels If PEPE can turn the $0.0000172 resistance level into support, the bearish outlook will be broken. Otherwise, the market may continue to fall.
📊 Technical Analysis From the price chart, the sell signal is very clear. Although the price has made higher highs, the relative strength index (RSI) has made lower highs. This divergence phenomenon usually indicates that the uptrend may correct or reverse in the short term because the market lacks sufficient bullish momentum.
📉 Signs of a market correction Since its all-time high (ATH), PEPE prices have fallen nearly 6%. If the bearish trend continues, PEPE may fall further by 20% and pull back to $0.0000130, which is the midpoint of the range of $0.0000172 to $0.00000878.
⚖️ Mean Reversion This correction or mean reversion is very common after an asset has rallied sharply in a short period of time. The mean reversion process helps to rebalance the market imbalances created by the sharp rise.
💡 Investor Advice Data shows that investors who bought PEPE in the past month have realized an average gain of 42%. If these investors choose to take profits at this time, the unrealized profits are likely to quickly turn into selling pressure. Therefore, now may be the time to consider profit-taking. Patient long-term buyers can also prepare to buy PEPE again at the upcoming lows.
📉 Declining number of active addresses Data shows that both the peak number of active addresses in 24 hours in mid-May and the current situation have declined, which is inconsistent with the typical situation of PEPE price action. This bearish divergence pattern once again confirms the potential adjustment that PEPE may be about to experience.
💡 Key observation points Although the overall outlook looks pessimistic, if PEPE can transform the $0.0000172 barrier into a support bottom on the daily timeframe, it will invalidate the bearish view. This development may attract many investors to take profits, triggering a subsequent plunge in PEPE prices to $0.0000120, which is the midpoint of the daily imbalance extending from $0.0000125 to $0.0000114.
Stay tuned to market trends, make smart decisions, and protect your investment!
