Pepe [PEPE] Shows Signs of Recovering After a Sharp Price Drop

On the 2nd of March, the overall cryptocurrency market appears to be recovering. Amid this, Pepe [PEPE], the third-largest memecoin, is showing signs of

The cryptocurrency market is showing signs of recovery, and third-largest memecoin, Pepe [PEPE], appeared to be recovering from a recent sharp price drop.

Current price momentum

With the ongoing price reversal, PEPE experienced a modest surge of over 1.50% in the past 24 hours and settled in to trade near $0.0000077 at press time.

Despite the shift in market sentiment, the memecoin’s trading volume dropped by 38%, indicating lower participation from traders and investors.

The decline in trading volume may be due to recent market sentiment, which has infused fear among traders and investors.

Price action and upcoming levels

With this slight upward momentum, PEPE has managed to stay above the crucial support level of $0.00000765.

According to AMBCrypto’s price analysis, this support level has a strong history of price reversals, indicating a potential bullish turnaround in the coming days.

Based on recent price movements, if PEPE holds above the $0.00000765 level, there is a strong possibility it could surge by 30% to reach the $0.0000105 mark.

As of now, PEPE’s Average Directional Index (ADX) stood at 35 and appeared to be moving upward, indicating strong momentum in the asset that could drive the memecoin higher.

Bullish on-chain metrics

With the potential for a strong bullish reversal, traders and investors have been showing increased interest and confidence in the memecoin, as reported by the on-chain analytics firm Coinglass.

Notably, traders betting on the long side dominated, with over-leveraged positions at $0.00000734, totaling $2.90 million in open positions.

$0.00000788 was another key level where traders betting on the short side were over-leveraged, holding nearly $1.90 million in short positions.

In addition to the bullish sentiment, PEPE’s Open Interest (OI) surged by 5%, which signaled an increment in traders’ positions.

$6.50 million worth of long positions

Besides traders’ growing confidence, long-term holders and investors have been accumulating the memecoin, as revealed by the on-chain analytics firm Coinglass.

Data from spot inflow/outflow showed that exchanges witnessed an outflow of $6.50 million worth of PEPE.

Such a substantial outflow of the memecoin suggested potential accumulation, which could create buying pressure and drive further upward momentum.

Technical and on-chain data suggest that bullish momentum is returning, potentially setting the stage for a strong PEPE rally.