
PEPE’s road to recovery – A 10% hike, but will that be enough?
After a 20% weekly drop, PEPE may be on the mend. Can this trend continue?
December 21, 2024
In a shocking turn of events, PEPE has registered gains of over 10% in the last 24 hours. This price hike is being fueled by an increase in buying pressure and sustained trading volume exceeding $5 billion.
To put things into perspective, PEPE suffered a crippling 20% weekly drop. However, this unexpected recovery could be a turning point for the cryptocurrency. But can we expect it to sustain?
Buying pressure seems to be on the rise, with Santiment’s data indicating an increase in supply outside of exchanges and a decline in supply within exchanges. This uptick suggests growing confidence in the token, which typically leads to price increases.
Furthermore, the fear and greed index is at an all-time low of 24%, indicating that investors are now extremely fearful about the market. While this could be seen as a contrarian indicator, it’s essential to remember that PEPE has historically been impacted by whales’ actions. The memecoin’s supply held by top addresses dropped last week, suggesting significant selling pressure from these large-scale investors.
Upon examining PEPE’s daily chart, our research team found the Relative Strength Index (RSI) indicating rising buying pressure. This momentum could be a sign that the price is set to continue its current trajectory.
On the flip side, we observed a bearish advantage in the market as depicted by the MACD indicator. While this may not necessarily mean another correction is imminent, it serves as a warning for investors to exercise caution going forward.
In conclusion, while this 10% hike could be seen as an encouraging sign, investors should be cautious about getting too optimistic. The cryptocurrency’s future trajectory remains uncertain, and further analysis is needed before making any decisive moves.
Source: ambcrypto.com