PEPE Price Prediction: Will the Memecoin Bounce Back?

PEPE, at the time of writing, had bounced by 35.2% in just four days. However, its daily chart revealed that a downtrend was still in play and dominant.

The memecoin sector has been one of the worst performing segments of the crypto market in recent months.

Its market cap has been completely decimated by 63%, or $87.5 billion, since 9 December.

In light of the lack of significant bidding in the market, here’s why investors can have a little bit of hope in PEPE’s recovery.

PEPE price dropped by 75% from December highs and faced a dominant downtrend on the daily chart. At the time of writing, PEPE had bounced by 35.2% in just four days.

However, it faced a 75.1% drawdown from its December highs and a downtrend was still dominant on the daily chart.

Its price action over the past three months has been bleak. Its price slid by 75% from its December highs and it faced a dominant downtrend.

The crypto market as a whole has suffered significant losses in the last three months.

Source: CoinMarketCap

Moreover, memecoins were one of the worst performing sectors.

Its market cap has been completely decimated by 63%, or $87.5 billion, since 9 December.

In light of the lack of significant bidding in the market, here’s why investors can have a little bit of hope in PEPE’s recovery.

PEPE balance on exchanges continues to trend lower

The balance on exchanges saw a relatively flat trend throughout 2024. Towards November, as the price began to rally higher, the balance on exchanges began to trend lower.

Since then, this downtrend has continued, even though the price has also been in a freefall. This hints at HODL behavior from investors. They were withdrawing their PEPE and placing it in cold storage.

While this accumulation can be seen as a bullish sign, so far, it has done little to halt the price’s decline.

Is there any sign of hope for PEPE price in November?

The spent output profit ratio (SOPR) divides the realized value of the spent outputs (price at which coins were sold) by the value at which they were acquired. Values above 1 indicate holders are selling at a profit, and values below 1 signal sales at a good and bearish sentiment.

Since early February, the SOPR has been below 1. This was a sign of capitulation among holders as they sold their coins at a loss.

The persistent selling pressure forced PEPE to make a series of lower lows and the trend might not reverse until Bitcoin (BTC) records extraordinary demand to push the crypto market up.

MACD shows sellers are dominant

The MACD was below zero and showed that the momentum was predominantly bearish. The market structure was also bearish and has been this way since late January.

The OBV was in decline over the past three weeks, but hovered around its early February lows at press time. Overall, the sellers were dominant.

However, the falling PEPE balance on exchanges may be a glimmer of hope for investors. It is unlikely to be enough to reverse the downtrend, but it’s still a start.