PEPE has risen over 10% in the past 24 hours
Buying pressure also seems to be increasing, suggesting that prices will continue to rise
In the past week, PEPE has encountered a significant price correction. However, over the last 24 hours or so, the memecoin has shown signs of recovery, and key indicators also support this sign.
Thus, AMBCrypto conducted further investigation to determine whether this price increase could lead to a full recovery.
Is PEPE recovering?
In the past week, PEPE's price has experienced a double-digit decline. Specifically, its value has dropped by over 20% in just 7 days. However, the memecoin successfully rebounded in the past 24 hours, with its value increasing by over 10%. At the time of writing, the memecoin is trading at $0.00001876.
As the price of memecoins rises, their trading volume has also increased by 39%, surpassing $5 billion. Whenever the trading volume rises alongside the price, it indicates a high likelihood of a sustained bull market.
Indeed, it is worth noting that memecoins driven by market hype and trends often suffer the most during price corrections.
On the other hand, when market conditions improve, they can also rise significantly. But does this mean that PEPE will experience a massive bull market rebound?
What can we expect in the future?
According to Santiment's data, buying pressure for PEPE has been rising recently. The recent increase in the off-exchange supply and decrease in exchange supply is evidence of this. Rising buying pressure indicates that people have confidence in the token, which usually leads to price increases.
Additionally, as of the time of writing, the Fear and Greed Index is at 24%, indicating that the market is in an 'extreme fear' phase. This finding suggests a high likelihood of price increases.
However, the whales have a different perspective. Last week, the supply of memecoins held by top addresses decreased—this is a sign of whale selling pressure.
Therefore, we looked at the daily chart of PEPE to see what market indicators reveal.
We found that the Relative Strength Index (RSI) is showing an upward trend, indicating that buying pressure is increasing. This helps maintain the momentum that memecoins have recently gained on the price chart.
Nevertheless, it is still not possible to say anything with complete certainty. The situation is such that the technical indicator MACD shows a clear bearish advantage in the market. Moreover, this could lead to another price correction in the coming days.
