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The cryptocurrency market saw a modest recovery in the last 24 hours following a sharp drop, with many tokens losing significant value. However, this rise impacted the memecoin sector, whose total market value increased by 18%. Memecoin projects like Pepe (PEPE) saw double-digit value increases in the last 24 hours, but gains might be short-lived due to ongoing market volatility.
What’s Happening with Pepe?
At the time of writing, the frog-themed memecoin PEPE was trading at $0.0000081. Its value increased by 18% in the last 24 hours, and its trading volume reached $2.18 billion with a 50% growth in the same period. However, an evaluation of the token’s daily price movements indicates a potential decline in the near term. Primarily, the market volatility is significantly high, as evidenced by the growing gap between the upper and lower bands of the memecoin’s Bollinger Bands indicator.
Bollinger Bands measure an asset’s market volatility and determine possible overbought or oversold conditions. When the gap between the indicator’s upper and lower bands widens, it indicates increasing market volatility. A closer look at the indicator shows that PEPE is currently trading below this volatility indicator’s lower band. Such a situation may indicate a continuation of the downtrend.
PEPE Chart Analysis
The token’s negative Awesome Oscillator confirms this possibility. Despite the double-digit price increase in the past 24 hours, PEPE’s Awesome Oscillator continued to emit red bars. This indicator measures an asset’s market momentum. When its bars are red, it indicates that the market is experiencing downward momentum. This puts PEPE at risk of losing the gains recorded in the past 24 hours.
This situation is further worsened by the fact that the rally at that time was not supported by significant demand for the memecoin. At the time of writing, PEPE’s Relative Strength Index (RSI) was at 39.93, below the 50-neutral line. This indicator measures an asset’s overbought and oversold market conditions. At 39.93, PEPE’s selling pressure outweighs accumulation.
PEPE could drop to $0.0000058 if demand remains low as it diverges from the general uptrend in the memecoin market. This would mean a 28% decrease from its current value. However, if memecoin sees an increase in demand and a shift in market sentiment from bearish to bullish, its price could rise to $0.0000085.
