Pepe (PEPE) Has Had a Tough Start This Year, But a New Buy Signal Has Appeared

Pepe  has had a tough start this year. The token dropped by 20% after hitting a sell signal on its chart. However, there's still hope as a new buy signal has appeared.

Despite starting the year on a positive note, Pepe (PEPE) token has seen some struggles lately. After hitting a sell signal on its 12-hour chart, the token dropped by 20%, putting traders on edge. However, a new buy signal has emerged, offering a glimmer of hope.

Currently, PEPE is trading at $0.000017526, which is 1.8% lower than yesterday. As the token consolidates, traders are keeping an eye on key levels to gauge whether it can bounce back or might drop further.

PEPE Important Support and Resistance Levels

From the 12-hour chart, we can see that PEPE is close to its support level at $0.00001662. This level has acted as resistance multiple times in the past, indicating that it could now provide strong support to stop prices from dropping further.

On the other hand, the token faces resistance at $0.00002200. If PEPE can break past this resistance, it could gain more momentum and continue rising. However, breaking through resistance levels can be challenging, especially in a bear market.

Relative Strength Index (RSI) for PEPE is at 38.9, which indicates that the token might be oversold at the moment. This could attract buyers and help PEPE begin to recover. However, for a strong recovery, breaking above the resistance line is necessary.

If PEPE fails to hold the support level at $0.00001662, it might drop even more and could see further losses.

MVRV Ratio Shows PEPE May Be Undervalued

The MVRV ratio for PEPE is at 41.92%, which indicates that the token might be undervalued right now. According to this metric, many people holding PEPE are currently at a loss. This could be an opportunity for new buyers to enter the market at a lower price, as many people might be willing to sell their tokens to cut their losses.

However, just being undervalued is not enough to make a token recover. It will need stronger market confidence and more buyers to push its price up.

Retail Activity Sends Mixed Signals

Looking at on-chain metrics, we can see that PEPE has 4,583 daily active addresses right now. This shows that while people are still using the network, the activity isn’t very high. On average, over the past 30 days, PEPE has had around 20k daily active addresses. So, while the activity is lower than usual, it could be a sign that people are still interested in the token.

On the other hand, smaller investors have been more active lately. We can see a 66.67% increase in transactions worth $10 to $100, indicating that smaller investors are showing more interest in PEPE at this price level. But for PEPE to recover strongly, larger investors (wholes or whales) need to step in and drive demand.

Liquidations Show Market Struggles

According to Coinglass, PEPE has seen 410.98k in long liquidations compared to 114.55k in short liquidations. This means that more people were betting on price increases (long positions), but some of these bets didn’t work out as expected, causing them to lose their positions.

On the other hand, people betting on price decreases (short positions) closed out a smaller total amount of their positions. In total, there were 2.96 times more long liquidations than short liquidations for PEPE.

These imbalances can create more volatility in the market. If short-sellers start closing their positions, PEPE might get a small price boost. However, a real recovery will depend on more buyers entering the market.