Pepe (PEPE) price is expected to drop by 20% before possibly rising again. Technical indicators and on-chain data predict a pullback to $0.0000130. However, if PEPE flips $0.0000172 into support, this bearish outlook could be invalidated.
Recently, PEPE surged, nearly tripling in market value. From May 19 to 27, the price jumped over 100%, reaching an all-time high (ATH) of $0.0000172. However, signs of weakness appeared as the price made higher highs, while the Relative Strength Index (RSI) made lower highs, indicating a bearish divergence. This often signals a short-term correction or reversal.
After a 6% decline from its ATH, PEPE's price suggests a possible 20% drop to $0.0000130, the midpoint of the $0.0000172 to $0.00000878 range. This correction could be a mean reversion, balancing the rapid price increase.
Investors might consider taking profits or preparing to buy PEPE at lower prices. According to Santiment, a 30-day Market Value to Realized Value (MVRV) ratio of 42% shows that recent buyers have made significant profits, which could lead to selling pressure. Additionally, a decrease in 24-hour active addresses from mid-May indicates potential for a price correction.
A surge in Bitcoin (BTC) could change this bearish outlook for PEPE.