On January 4, PEPE was affected by the "sell" signal of the TD Sequential indicator on the 12-hour chart, ushering in a deep correction of 20%. However, market sentiment has not completely collapsed - the same indicator now shows a "buy" signal, which has rekindled the hope of PEPE's recovery for many traders.

As of press time, PEPE is trading at $0.00001745, down 1.89% on the day. However, many market observers believe that this may just be a brief calm before the storm. Key support and resistance levels are about to determine the next fate of PEPE!

Can it break through resistance and ignite a new round of growth?

Currently, PEPE price is firmly holding support at $0.00001662, a level considered the starting point for any potential rebound. But what the bulls really need to cross is the main resistance line at $0.00002200. If it can break through this point, PEPE may usher in a significant wave of upward momentum.

Technical indicators are also sending positive signals. The relative strength index (RSI) is currently at 41.59, close to the oversold area, which may provide buyers with an opportunity to enter the market at a low level. However, to confirm a true bullish trend, the price must strongly break through the downtrend line. If the support level is lost, it may trigger a new round of decline, and investors should be vigilant.

Low MVRV ratio: Buy now or false signal?

From the on-chain data, the market value to actual value ratio (MVRV) of PEPE has dropped to 41.92%, indicating that the current token may be seriously undervalued. The paper losses of most holders may attract new funds.

But we need to be aware that relying solely on the "undervalued" label is not enough to drive a rebound. The intervention of continued buying pressure and the restoration of market confidence are the key to stabilizing and rising PEPE prices.

With retail investors entering the market, can network participation help boost the rebound?

The number of daily active addresses has stabilized at around 4,583, indicating that network participation is acceptable, but lacks explosive growth. It is worth noting that the volume of small transactions in the $10-100 range has increased by 66.67%, indicating that retail funds have begun to flow in tentatively.

However, the rise in retail activity requires more participation from big funds, otherwise the price rebound may be short-lived. The surge in network participation will be an important driving force for PEPE to rekindle market enthusiasm.

Liquidation data reveals imbalance in market competition

Currently, the long liquidation of PEPE has reached 4.1098 million US dollars, while the short liquidation is only 1.1455 million US dollars, which shows that there are still a large number of traders in the market who are optimistic about the price recovery. However, over-leveraged long positions may also amplify the risk of market volatility.

PEPE may see a rebound in the short term as shorts start to cover their positions. However, whether the real upward trend can be maintained still depends on the broader market environment and continued support from buying power.

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