PEPE: Is ‘buying the dip’ a good move to make?

PEPE Retraces After Reaching High, Presents Buying Opportunity

PEPE has retraced after reaching a high of $0.00001724, dropping 32.6% to $0.00001131. This retracement has brought PEPE to a confluence of support levels, including a key trendline and an ascending trendline.

Currently valued at $0.00001264, PEPE has gained 3.17% in the past 24 hours but remains 16.74% lower over the past week. Its market capitalization is $5.3 billion, with a trading volume of $860 million, a decrease of 35.8%.

Bullish Indicators Surge

Analysis of Santiment data reveals a spike in active addresses and transaction volumes, indicating potential user accumulation. The ratio of daily on-chain transaction volume in profit to loss heavily favors profit, further suggesting increased user activity.

The daily PEPE/USD chart shows support along the ascending trendline, suggesting a possible resumption of the uptrend. The Stochastic RSI is oversold, signaling a price reversal could be imminent. Additionally, the MACD histogram has crossed above the signal line, indicating a potential bullish crossover.

Buying Opportunity Emerges

The current dip in PEPE presents a potential buying opportunity. The surge in active addresses and transaction volumes, along with technical indicators, provides bullish signals. The support along the ascending trendline and oversold conditions further support a bullish outlook.

However, it's important to note that if support fails, PEPE may experience further price declines. Therefore, careful consideration should be taken before making investment decisions.

Source: TradingView