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The latest downturn that has swept throughout the whole crypto market has pushed meme coin PEPE into oversold territory, in line 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 day by day candlestick timeframe.
Historic information reveals that within the earlier two situations, PEPE’s value motion adopted a particular sample, resulting in a powerful 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 without doubt one of the youngest meme cash with a big market cap. Nevertheless, over the previous 12 months and a half since its launch, PEPE has hardly ever 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 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 situations the place PEPE turned oversold, the value entered a consolidation section lasting roughly one month earlier than rebounding with a powerful 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 finally shot as much as new all-time highs within the weeks after.
An identical 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 Count on Subsequent
With PEPE now coming into one other oversold situation, historic patterns counsel that the meme coin might stay in a consolidation section for no less than the subsequent month. If previous tendencies repeat, this era might function an accumulation window for traders 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 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% under this all-time excessive.
Featured picture from Shutterstock, chart from Tradingview.com
