PEPE Tests Critical Support at $0.0000044 as Momentum Indicators Flash Oversold
Market Pulse
- The PEPE price declined by 35.6% over the last month.
- The token’s 200% price rally earlier appears to be a distant memory for holders.
- Recent oversold levels and rising exchange outflows indicate large investors are buying the dip.
PEPE’s downward trend is getting worse with another 17.8% loss in the week. It is down 35.6% on the month, falling from $0.00000745 to about $0.0000044. The cheaper get, the harder they fall. It would feel like a safe assumption that PEPE’s LO is near, as measured by institutional and mythological Elliott wave theory rules. The collapse is getting wilder, but the downtrend is over, no it isn’t! The minimum PEPE would be expected to lose is about 4.5%, give or take a bit.
| Metric | Value |
|---|---|
| Asset | PEPE (PEPE) |
| Current Price | $0.00 |
| Weekly Performance | -17.76% |
| Monthly Performance | -35.59% |
| RSI (Relative Strength Index) | 27.8 |
| ADX (Average Directional Index) | 51.5 |
| MACD (MACD Level) | 0.00 |
| CCI (Commodity Channel Index, 20-period) | -122.46 |
RSI Plunges to 27.8 – Deepest Oversold Territory Since Summer Washout
Momentum exhaustion becomes evident at 27.8 on the daily RSI, representing PEPE’s most oversold reading since the August market-wide flush. Comparable RSI readings below 30 have proceeded to lead to relief rallies of 40-70% in PEPE’s history. The oscillator’s position coincides with the onset of the previously rare double buy signals introduced in recent reports, meaning the panic selling could be reaching a climax.
Therefore, considering that virtually all swing traders usually look to the 14-day moving average for quick profits, any break above it could ultimately realize a psychological momentum shift and run on stop losses, further propelling the price. At the same time, for those intrigued by longer-term swing setups, using the $28 recent low as a clear invalidation level would leave ample room for an ideal risk-to-reward setup.
ADX at 51.5 Confirms Mature Downtrend Nearing Exhaustion Phase
When the ADX indicator crosses above this threshold, it often signals that a trend is ending. Extreme oversold conditions bring the bag holders out in full force and opportunistically provide the heavy hands necessary to orchestrate a massive short covering rally in the names with the largest short interest (like PEPE). Coach summed up the sentiment last evening by sorting his charts for tocks that have any hope, and the goose egg showing up all over the place.
Simply put, when a potential candidate that could double is entering a period of exhaustion, the writing creates a low volume, somewhat illiquid timing tells me it’s becoming a coiled spring that’s about to pop.
Moving Averages Paint Dire Picture as Price Trades 45% Below 50-Day EMA
The declining volume profiles are extraordinarily bearish, with buying interest near non-existent. Owing to the illiquid nature of PEPE, conversely, rallies can and do typically witness vast surges. Nonetheless, these windows of opportunity are often fleeting. Encapsulating this price action, the 10-day VS 50-day MA is excessively bearish, with the 10-day EMA penetrated convincingly by the 20-day, which has in turn been slashed by the 50-day. We’re firmly in the grips of the bear.
What is most telling is the pinch between the 10-day and 20-day EMAs, which implies that shorter-term selling momentum may be waning, while the longer-term trend is still firmly bearish. The first hurdle for the bulls is to take back that 10-day EMA at $0.0000049 – until the price can hold above this level, any relief rallies are to be taken with a pinch of salt. Also worth noting is that previous PEPE bounces from comparable EMA configurations saw the price needing 2-3 weeks of consolidation before higher ground was sought.
Support at $0.0000044 Holds by Thread as Resistance Stacks Overhead
Bullish traders try to protect the emotional $0.0000044 level following half a dozen examinations during the last 14 days, sufficient reason for every jump increasingly losing energy. Beneath this vital assistance, the next considerable ground can be found with the summer time lows about $0.0000038, around 14% reduce from current costs. The volume user profile reveals which a ton of gathering is taking place approximately $0.0000042 and $0.0000044, therefore, it is no real surprise this area consistently luring buyers regardless of the general downtrend.
There are resistance clusters between $0.0000049 and $0.0000054, which are the 10-day and 20-day EMAs, that should limit any bounce. Then, the monthly pivot at $0.0000066 is the key resistance that held up three different recovery rallies this month. The technical target of $0.0000091 looks like a long shot to implement with this type of resistance architecture. It will take a massive shift in sentiment to push XRP that high.
The market structure signals maximum fear with PEPE trading 76% below yearly highs – historically an area where contrarian accumulation begins. This configuration resembles the setup from August’s bottom, where similar oversold extremes preceded that explosive 109% rally. The difference this time involves the positive catalyst of easing exchange outflows, suggesting institutional players may be quietly positioning for the next leg higher.
Bulls Need Conviction Close Above $0.0000049 to Shift Momentum
Buyers need to ensure a definitive daily close above $0.0000049 for the latest sell-off to be invalidated and to aim for $0.0000054. The $0.0000091 is a realistic target if the outflows are indeed happening on the expected lines, but overcoming a couple of hurdles won’t be easy. The double buy signal confluence will gain more trust in this uptrend if they can secure current levels.
If the $0.0000044 resistance breaks, it would allow the price to eventually challenge the next formidable barrier near $0.000005. Bulls need a rally above that level to regain control of the cryptocurrency and ease pressure on long suffering holders. However, without a substantial upside catalyst, the rally is unlikely to gather momentum, given the growing roster of bagholders forced to dump coins whenever prices rise.
The very oversold conditions combined with new pockets of accumulation spreading across various timeframes are indications that the current holding pattern is likely to see one more week of price oscillation before an upside resolution can be attempted. The longer-term 200-day SMA at $0.0000045 will be closely watched as underlying support during this base-building period.
