PEPE price is showing signs of losing momentum. Key technical indicators suggest that the recent uptrend is losing steam. As a result, the memecoin is down nearly 10% in the last 24 hours.

Furthermore, short-term price indicators such as the EMA lines remain neutral, signaling that PEPE could test important support levels soon. While there is a possibility of a downward move, a resurgence of bullish momentum could push PEPE to retest key resistance levels.

PEPE’s current uptrend is fading

PEPE’s ADX fell to 17.89, a sharp decline from its peak of 58.52 on September 30, when PEPE was trading at $0.00001147. In short, ADX (Average Directional Index) is a key technical indicator used to measure the strength of a trend, regardless of whether it is bullish or bearish.

So, when the ADX is above 25, it indicates a strong market trend, suggesting that momentum is likely driving the price in a clear direction. Conversely, when the ADX drops below 20, it signals a weak or non-existent trend.

This points to a consolidation or an indecision phase where no clear price movement is dominant. Currently, with PEPE’s ADX at 17.89, this suggests that the market is in a consolidation phase, without strong directional momentum.

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PEPE ADX. Fonte: TradingView

A low ADX value indicates that the price is likely moving within a tight range, without gaining or losing much ground. This is in line with the idea that PEPE is in a period of reduced volatility, even though it is one of the largest memecoins on the market.

The sharp drop in ADX also confirms that the strong trend seen in late September has faded, leaving PEPE without clear directional strength. This makes it more susceptible to sideways trading or minor fluctuations until a new trend emerges.

The MVRV ratio is now negative

PEPE’s 1D MVRV ratio is currently at -3.12%, indicating that on average, recent investors are holding the memecoin at a loss relative to its current price. 1D’s MVRV (Market Value to Realized Value) is a key metric used to assess whether a token is overvalued or undervalued by comparing an asset’s market value to its realized value.

When the MVRV ratio is positive, it suggests that holders are generally in profit, while a negative ratio implies that they are in a loss-making position. Extremely positive values ​​signal that a sell-off may be imminent as investors may start taking profits.

PEPE 1D MVRV Ratio. Fonte: Santiment

On the other hand, a negative MVRV ratio, such as the current -3.12%, suggests that the market is undervalued. This could present a buying opportunity as sellers have largely exhausted themselves. The drop from 4.17% to -3.12% in just one day is a sharp reversal. It indicates that many investors have gone from being in profit to holding losses in a very short period of time.

This sudden change suggests a rapid sell-off or price drop, likely driven by market volatility or external factors impacting PEPE’s price. This could trigger more cautious market behavior as traders wait for MVRV to stabilize or reverse upwards.

PEPE Price Prediction: Downtrend Ahead?

PEPE’s EMA lines are currently neutral, with no clear indication of an uptrend or downtrend, reflecting market indecision. The EMA (Exponential Moving Average) is widely used in technical analysis to smooth price data and identify trends, giving more weight to recent price movements.

Short-term EMA lines react quickly to price changes, while long-term EMA lines provide a broader view of the trend. In the case of the PEPE memecoin, the short-term EMAs are still above the long-term ones. This is usually considered a bullish sign, but they are starting to slope downwards.

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PEPE EMA and Support and Resistance lines. Source: TradingView

This downward slope suggests that the bullish momentum is weakening and a potential turnaround could be on the horizon. If the current price action continues in this neutral to slightly bearish direction, the PEPE memecoin could test the support level at $0.00000835 in the coming days. Should this support fail to hold, the price could decline further, with the next strong support at $0.00000776.

However, if the bullish momentum resumes, PEPE price could challenge the resistance at $0.0000119. For now, the market remains in a state of uncertainty, and traders are likely waiting for a clearer signal to determine the next move.

The article PEPE price fluctuates as market momentum loses momentum was first seen on BeInCrypto Brazil.