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The latest downturn that has swept throughout the whole crypto market has pushed meme coin PEPE into oversold territory, in response to the Relative Energy Index indicator. Notably, that is solely the third time PEPE has reached the oversold ranges in its historical past, notably on the day by day candlestick timeframe.
Historic information reveals that within the earlier two cases, PEPE’s worth motion adopted a selected sample, resulting in a robust restoration after a interval of consolidation. As such, the latest PEPE worth crash is perhaps step one earlier than an incoming bull worth motion.
PEPE Oversold Situation Is A Uncommon Market Occasion: What Occurred The Final Two Occasions?
PEPE hasn’t had a lot historical past to go by, because it is likely one of the youngest meme cash with a big market cap. Nonetheless, over the previous 12 months and a half since its launch, PEPE has not often dipped into oversold territory on the Relative Energy 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 stress on a crypto turns into an excessive amount of in a brief interval, which causes the RSI indicator to fall under 30.
Associated Studying
In each earlier cases the place PEPE turned oversold, the value entered a consolidation part lasting roughly one month earlier than rebounding with a robust uptrend. This sample is obvious in a PEPE day by 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 situations.
As proven by the chart under, 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 ultimately shot as much as new all-time highs within the weeks after.
The same pattern 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 Anticipate Subsequent
With PEPE now coming into one other oversold situation, historic patterns counsel that the meme coin might stay in a consolidation part for no less than the following month. If previous traits repeat, this era might function an accumulation window for buyers who’re prepared to train endurance and place themselves forward of a possible rally.
Associated Studying
The timeline for this anticipated surge ought to start on March 10, which is strictly 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 would push its worth 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% under this all-time excessive.
Featured picture from Shutterstock, chart from Tradingview.com
