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The latest downturn that has swept throughout your complete crypto market has pushed meme coin PEPE into oversold territory, in keeping with the Relative Power Index indicator. Notably, that is solely the third time PEPE has reached the oversold ranges in its historical past, notably on the every day candlestick timeframe.
Historic information reveals that within the earlier two situations, PEPE’s value motion adopted a selected sample, resulting in a robust restoration after a interval of consolidation. As such, the latest PEPE value crash may be step one earlier than an incoming bull value motion.
PEPE Oversold Situation Is A Uncommon Market Occasion: What Occurred The Final Two Instances?
PEPE hasn’t had a lot historical past to go by, because it is among the youngest meme cash with a big market cap. Nevertheless, over the previous yr and a half since its launch, PEPE has not often dipped into oversold territory on the Relative Power Index (RSI). This makes its present oversold standing a big occasion in technical evaluation, because it has solely occurred twice earlier than. An oversold situation is when the promoting strain on a crypto turns into an excessive amount of in a brief interval, which causes the RSI indicator to fall beneath 30.
Associated Studying
In each earlier situations the place PEPE turned oversold, the worth entered a consolidation part lasting roughly one month earlier than rebounding with a robust uptrend. This sample is obvious in a PEPE every day candlestick chart shared on social media platform X by crypto analyst Obi (@obi_eths), which illustrated the meme coin’s historic response to oversold circumstances.
As proven by the chart beneath, the primary time the meme coin turned oversold was in September 2023, 4 months after its launch. Notably, the oversold situation was adopted by 31 days of consolidation earlier than PEPE finally shot as much as new all-time highs within the weeks after.
The same development occurred in August 2024, when PEPE entered into an oversold situation for the second time. This was adopted by one other 31 days of consolidation up till September 6, when one other uptrend started.
Accumulation Section? What To Count on Subsequent
With PEPE now coming into one other oversold situation, historic patterns recommend that the meme coin might stay in a consolidation part for at the least the following month. If previous developments repeat, this era might function an accumulation window for traders who’re keen to train persistence and place themselves forward of a possible rally.
Associated Studying
The timeline for this anticipated surge ought to start on March 10, which is precisely 31 days after PEPE entered the latest oversold situation. From right here, the meme coin might try and mirror its previous rebounds by staging an prolonged transfer that might push its value past its present all-time excessive of $0.00002803, which was recorded on December 9, 2024.
On the time of writing, PEPE is buying and selling at $0.000009544, 65.8% beneath this all-time excessive.
Featured picture from Shutterstock, chart from Tradingview.com
