Can Pepe Coin Rebound From the Recent 40% Drop?

• Potential short squeeze could trigger a rebound: With sell-side liquidity nearly exhausted, analysts suggest that short liquidations could drive a 110% price rally if buy-side momentum strengthens.
• Oversold RSI signals reversal: Pepe Coin’s RSI has dropped to 32, entering oversold territory. This historically indicates a potential trend shift, sparking increased buying interest and price recovery.
• Key support and breakout targets: PEPE is holding near a critical support level at $0.000008459. A bullish MACD crossover and a breakout from its descending channel could push the price toward $0.00002, representing a significant upside.

Pepe Coin, a meme-inspired asset on the Ethereum blockchain, has seen a 65% drop from its all-time high of $0.00002825 recorded two months ago. Over the past week, the coin plunged by 40%, driven by large selloffs. However, with sell-side liquidity now largely depleted, market analysts believe a short squeeze could fuel a rapid recovery.

Cryptocurrency markets thrive on volatility. As major players offload holdings, it can trigger sharp declines. But when selling pressure fades, a reversal often follows. If buy-side liquidity strengthens, Pepe could rally by 110%, driven by traders covering short positions and renewed market interest.

Oversold RSI Signals a Possible Trend Shift

Pepe’s Relative Strength Index (RSI) on the 24-hour chart has dropped to 32, entering oversold territory. Historically, when RSI dips near this level, it often precedes a price rebound as buying pressure increases.

Market analysts point out that similar RSI patterns have led to notable recoveries in the past, supporting a bullish outlook for the memecoin. If sentiment shifts, the stage could be set for Pepe’s next upward surge.

Critical Support Levels and Technical Indicators

Currently priced at $0.00000952, PEPE recently hit a local low of $0.000008459, a key support level. The MACD is also showing early signs of a bullish crossover, with the gap between the signal and MACD lines narrowing.

If Pepe can break out of its descending channel, it may target resistance levels at $0.000012, $0.000015, and $0.00002. If confirmed, this could result in a 110.33% rally from current levels. However, failing to maintain support could lead to further price consolidation or declines.

Outlook: Cautious Optimism

Despite recent setbacks, Pepe Coin shows potential for a strong recovery. Its oversold RSI, exhausted sell-side pressure, and key technical support suggest that a trend reversal may be imminent. However, sustaining momentum will depend on whether buy-side liquidity strengthens and if crucial resistance levels are breached. Traders are watching closely for signs of a breakout.