PEPE's price has dropped nearly 8% in the past 24 hours, a few days after reaching an all-time high on December 9. Momentum indicators, including an RSI of 33.3, suggest that PEPE is approaching oversold territory but has not yet reached the critical threshold of 30, leaving the opportunity for further corrections.
Additionally, the 7-day MVRV ratio at -9.3% indicates significant losses for short-term holders, with historical data suggesting the trend could decline to -12% to -15% before recovering. Whether PEPE can maintain the important support level at $0.0000188 or will break below this level could determine its next major price move.
PEPE's RSI Index Has Not Reached Oversold Levels
PEPE's RSI is currently at 33.3, reflecting a significant drop since December 16. This indicates that the Meme Coin is approaching oversold territory as the RSI nears the critical level of 30.
The sharp decline in the RSI, along with the consecutive 8% correction in the past 24 hours, reveals increasing selling pressure and short-term bearish sentiment.
PEPE's RSI index. Source: TradingView
The RSI (Relative Strength Index) measures the speed and magnitude of price changes to assess whether an asset is overbought or oversold. RSI values above 70 indicate overbought conditions, often signaling a potential downward correction, while values below 30 indicate oversold conditions, which may lead to a recovery.
With PEPE's RSI at 33.3 and nearing oversold levels, the price may continue to face downward pressure, but a potential recovery could occur if buyers start stepping in at these lower levels.
MVRV Ratio Indicates Further Corrections May Occur
The 7-day MVRV ratio of PEPE is currently at -9.3%, a sharp decline from 17% on December 8 when its price hit a new record. This negative MVRV ratio indicates that, on average, current short-term holders are experiencing unrealized losses. The recent decline reflects increasing selling pressure, suggesting that the current correction may extend in the short term.
PEPE's 7-day MVRV ratio. Source: Santiment
The 7-day MVRV ratio measures the average profit or loss of tokens moved in the past 7 days compared to their current market value. Historical data shows that PEPE's 7-day MVRV ratio often reaches around -12% to -15% before price recoveries occur.
If this trend continues, the current -9.3% indicates the potential for further declines before PEPE finds a bottom and begins to recover.
PEPE Price Prediction: Could a 47% Correction Occur Soon?
The support level at $0.0000188 is crucial for PEPE's price because if broken, the price could continue to decline. If this support level is not maintained, PEPE may test at $0.000017 and could drop as low as $0.000011, equivalent to a 47% correction from the current level.
This negative outlook is reinforced by its EMA lines, as shorter-term EMA lines cross below the longer-term EMA line, signaling continued downward momentum.
PEPE Price Analysis. Source: TradingView
Conversely, if PEPE's price can regain positive momentum, it may challenge the resistance level at $0.0000227.
A breakout above this level could open up opportunities for further bullish rallies, with targets at $0.0000259 and potential $0.000028 if the upward trend is reinforced.