PEPE Records Negative Price Action Despite Market Recovery Signs, Metrics Melting, Twist Expected

Despite the signs of possible recovery in the market, PEPE has recorded a negative push in its price action. As of writing, data from CoinMarketCap

PEPE price faced a downturn on Monday, recording a 6.59% decrease in price over the past 24 hours. According to data from CoinMarketCap, PEPE now trades at $0.000009054.

The price drop comes amid signs of possible recovery in the market, with several cryptocurrencies posting gains. However, PEPE seems to be bucking this trend with a sustained price decrease.

The sell-off in PEPE is also evident in its price action over the past week, with the token showing a price decline of over 15%. This drop is more aggressive compared to the broader market, which saw a collective price decrease of 8%.

Despite the price decrease, other metrics suggest that the sell-off in the PEPE ecosystem could be a short-term reaction from new traders. Key metrics like trading volume and large transactions are on the rise, which could potentially fuel a rebound for the token.

The digital currency’s trading volume increased by 48% to reach $773.18 million, indicating heightened activity within the PEPE ecosystem.

Moreover, the large transaction data from IntoTheBlock shows that whale transactions, measured by the platform as transactions above $100,000, reached 51.23% with a cumulative volume of $40.22 million in a day.

These positive metrics could help PEPE reverse its growth in the short to mid-term, especially as Open Interest remained relatively elevated.

Another twist to expect is that this price action might be positive for PEPE overall. This is because the price slump is an avenue for the meme coin to shed off excess gains with a floor now in sight.

The PEPE price floor is pegged around $0.0000086, a level that could provide support to the token’s price in case of further sell-offs.

The token’s Relative Strength Index (RSI) metric is flashing a 43 reading on the 14-day chart, which is just below the neutral zone. Even if this sell-off persists, it will eventually reverse course.

When bears are done dumping their PEPE holdings, bulls can swoop in to stack the token in anticipation of a price increase. The goal is for the token to recover from its price losses and clear one zero in the mid-term.