- Pepe (PEPE) dropped over 9% amid a broader market correction, but strong spot market accumulation and technical indicators suggest a potential bullish reversal.
- Despite bearish pressure in derivatives, investor sentiment remains largely optimistic, keeping hopes of a rebound alive.
Market Dip Sparks Concern, But Support Holds Firm
Pepe (PEPE) witnessed a dramatic 9.37% drop in the past 24 hours, one of the steepest declines among major memecoins. The drop coincided with a broader market correction that shaved 3.03% off the entire memecoin sector. Notably, trading volume surged by 67% to $9 billion—highlighting heightened investor activity during the dip. Despite the fall, PEPE continues to hold key support levels, offering a potential foundation for recovery.
Technical Indicators Signal Potential Rally
Chart analysis shows that PEPE might be on the verge of a bullish reversal. The memecoin is currently trading at the lower Bollinger Band, which typically signals oversold conditions. A green candlestick has formed, and further confirmation with additional green candles could suggest that bullish momentum is returning.
Also read: Mutuum Finance (MUTM) Presale Soars: The Top Crypto to Buy in 2025 as Dogecoin (DOGE) Drops 26%
Meanwhile, the Money Flow Index (MFI) currently sits at 36.36—below the neutral 50 level—indicating a low liquidity environment. However, the MFI also shows that capital is beginning to flow back into PEPE, hinting at rising investor confidence. If liquidity increases in tandem with price movement, a significant rally could follow.
Accumulation Grows Despite Derivatives Pressure
Spot market activity presents a bullish narrative. Over the past 48 hours, traders on platforms like Binance and Bybit have accumulated $22.54 million worth of PEPE, according to Exchange Netflow data. This rising accumulation reflects confidence in a price recovery.
In contrast, derivative markets show a more cautious stance. Open Interest has risen to $520.4 million, but seller dominance prevails, with a sell volume ratio of 0.937. Despite this, continued spot accumulation could trigger short squeezes and fuel upward momentum.
Investor sentiment also remains optimistic. Although bullish sentiment fell slightly—from 90% to 80.8%—a level above 50% still indicates strong community belief in PEPE’s long-term potential. As buying interest persists, a rebound may be closer than it appears.
