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Pepe sale signal suggests 20% drop before bulls return
Pepe price may drop, indicating a stop in its rise.
A 20% drop that retests $0.0000130 is predicted by technical indicators and on-chain measurements.
Meme coin flipping $0.0000172 into a support floor will refute the bearish argument.
Recently, Pepe (PEPE) has rallied almost tripling its market value. Due to the recent impulsive increase, investors might anticipate a short-term correction, which could benefit patient and long-term purchasers.
Pepe price falls from record high
Pepe price rose over 100% from May 19 to 27. This brief increase propelled the frog-based meme currency to $0.0000172, its ATH. PEPE showed weariness on its last climb between May 21 and 27.
This sell signal is evident when looking at the price, which created higher highs, while the Relative Strength Index (RSI) brought up lower highs. Bearish divergence, caused by a lack of bullish momentum, frequently causes a short-term upswing correction or reversal.
After falling over 6% from its ATH, Pepe's price behavior suggests a pullback. This pessimistic view might push the frog-based meme currency 20% down to $0.0000130, the middle of the $0.0000172 to $0.00000878 range.
This form of correction or mean reversion occurs when an asset rallies too quickly. The mean reversion mechanism corrects imbalances from this abrupt shift.
In this case, investors should book profits or prepare to purchase PEPE on falls.
Santiment data shows a sell signal when the 30-day Market Value to Realized Value (MVRV) ratio is near 42%. Investors who bought PEPE last month made 42% on average. This unrealized profit might swiftly become selling pressure if these holders sell.
Add to the negative argument, the 24-hour active addresses increases from mid-May and current circumstances are dropping, demonstrating typical Pepe price action non-conformity. One other sign that PEPE may soon correct is this bearish divergence scenario.
A Bitcoin (BTC) surge might change Pepe price's dismal perspective.
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