PEPE: Is ‘buying the dip’ a good move to make? – perspective by AMBCrypto
Pepe (PEPE) has recently experienced a significant 32.6% drop in price and retraced to $0.0000120 after hitting its all high of $0.00001724.
PEPE has pulled back to a confluence point at the $0.00001131 support level. This is also an ascending trendline support that has been retested several times in the past two months.
This retracement presents a potential buying opportunity for traders looking to capitalize on the dip and position themselves for the next surge.
PEPE had seen a surge in daily active addresses and transaction volumes over the past few weeks, suggesting a likely bullish rally.
The number of active addresses indicated several spikes, with multiple peaks surpassing 200,000 active addresses in a 24-hour period.
The ratio of daily on-chain transaction volume in profit to loss was skewed heavily towards profit, suggesting increased user activity and potential accumulation.
Moreover, the daily PEPE/USDT chart revealed that the recent pullback has found support along an ascending trendline. So, the uptrend may soon resume.
The Stochastic RSI was oversold at press time — potentially signaling a price reversal. Also, the MACD histogram has crossed above the signal line, indicating a potential bullish crossover.
PEPE’s current dip presents a potential buying opportunity. The surge in active addresses and transaction volumes provided a major bullish signal.
The strong support found along the ascending trendline and oversold conditions on the Stochastic RSI affirmed the bullish signal. It suggested that more investors were considering buying the dip.
However, If this fails to hold, the memecoin may see further dips in its price.
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