Pepe Coin price, an Ethereum-based meme coin, has plunged significantly amid broader market corrections. The meme coin has dropped 65% from its ATH of $0.00002825, recorded two months ago. Over the past week, PEPE fell by more than 40% due to a substantial selloff. However, Here are 3 Reasons Why Pepe Coin price suggests a potential reversal that may spark a 110% rally.
Pepe Coin Price Eyes Major Rebound as Short Liquidation Looms
PEPE price has experienced a sharp decline after a wave of selling pressure wiped out sell-side liquidity. This downturn resulted in a significant price drop, pushing the asset to lower levels as large holders exited their positions.
However, with sell-side liquidity now exhausted, market dynamics may shift toward a potential short squeeze. Traders anticipating further declines could face liquidations, fueling a swift price rebound.
Cryptocurrency markets often exhibit high volatility, particularly when major players offload their holdings. The recent decline in meme coins reflects broader market sentiment, but a reversal could be on the horizon.
If buy-side liquidity strengthens, it may trigger a rapid recovery, leading to a possible 110% rally. The liquidation of short positions could accelerate this upward momentum, drawing renewed interest from market participants.
Oversold RSI May Hints at Reversal
Pepe Coin Price could be on the verge of a strong rebound as key indicators suggest a potential surge. One major factor driving this outlook is the recent price decline, which pushed the Relative Strength Index (RSI) into oversold territory. Currently, on the 24-hour chart, the RSI is at 32, nearing an oversold region.
Such conditions have often signaled a trend reversal, sparking renewed buying interest and fueling a swift recovery. Market analysts point to past instances where similar RSI dips preceded substantial price rebounds, adding weight to this bullish projection.
PEPE Price Key Support Holds: Is a 110% Rally Ahead?
At press time, the value of Pepe is $0.00000952, reflecting a slight 1% decrease over the past day. The memecoin recently touched a local low of $0.000008459, marking a critical support level that has historically influenced price action.
The Moving Average Convergence Divergence indicator is beginning to show a narrowing gap between the signal and MACD lines, hinting at a potential bullish crossover. A breakout from the descending channel pattern could fuel a bullish reversal, targeting resistance levels at $0.000012, $0.000015, and $0.00002. This could result in a 110.33% upside move from current levels if confirmed.
The Pepe Coin price shows signs of a potential rebound, with indicators hinting at a strong recovery. The asset’s oversold RSI, short liquidations, and strong support levels suggest a possible 110% rally.
The post 3 Reasons Why Pepe Coin Price Reversal May Trigger 110% Rally appeared first on CoinGape.
