PEPE broke above a resistance level, hinting at a bull rally, but later fell under that mark again.
- PEPE’s price increased by more than 2% in the last 24 hours. On-chain metrics hinted at a further price increase.
PEPE witnessed major price corrections over the last week, which resulted in the memecoin losing a substantial amount of its market capitalization.
However, the good news was that the memecoin finally showed signs of recovery as its daily chart turned green. Does this hint at a fresh bull rally?
PEPE ready to recover
CoinMarketCap’s data revealed that the memecoin’s price dropped by 6% in the last seven days. In fact, the coin dipped to $0.0000106, which was last week’s lowest.
But the memecoin started to gain bullish momentum as its value surged by more than 2% in the last 24 hours. At the time of writing, PEPE was trading at $0.00001194 with a market capitalization of over $5.02 billion, making it the 23rd largest crypto.
The recent price uptick also allowed the memecoin to go above a key resistance level.
AMBCrypto’s analysis of the memecoin’s 12-hour chart revealed that it managed to break above $0.000012. However, at press time, it was trading a bit under that mark.
This breakout looked optimistic and could result in a full-fledged recovery if PEPE manages to once again go above the mark and sustain the momentum.
If that happens, then investors might witness PEPE retesting its all-time high in the coming weeks.
Source: TradingView
Will PEPE begin a rally?
Since PEPE’s price dropped after breaking above the resistance, AMBCrypto then planned to analyze its metrics to find whether they hint at a bull rally.
We found that buying pressure on the memecoin was high, as evident from the spikes in its exchange outflow over the last week.
Additionally, PEPE’s supply on exchange dropped on the 16th of June while its supply outside of exchange increased. This also suggested that investors were buying the memecoin.
The memecoin’s MVRV ratio also improved slightly after dipping on the 14th of June, which can be inferred as a bullish development.
Source: Santiment
Apart from this, the memecoin’s weighted sentiment has improved over the last few days. This meant that bullish sentiment around the memecoin improved.
However, its social volume declined, reflecting a decline in its popularity.
Source: Santiment
AMBCrypto’s analysis of Hyblock Capital’s data revealed that if PEPE actually turns bullish, then it might soon touch $0.0000139, as liquidation would rise at that level.
Read Pepe’s [PEPE] Price Prediction 2024-25
Generally, a rise in liquidation results in short-term price corrections.
A successful breakout above that level could allow PEPE to reach new highs. Nonetheless, if PEPE the bears step up, then it won’t be surprising to see the memecoin drop to $0.000009.
Source: Hyblock Capital
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