PEPE Drops 32.6%, Potential Buying Opportunity Amid Bullish Signals

Price Action

Pepe (PEPE) has recently experienced a significant 32.6% price drop, retracing to $0.00001131 after reaching its all-time high of $0.00001724. The retracement brought PEPE back to a confluence point at the $0.00001131 support level, which aligns with an ascending trendline support that has been retested multiple times in the past two months. This pullback could present a potential buying opportunity for traders looking to capitalize on the dip.

Market Overview

At the time of writing, PEPE was valued at $0.00001264 on CoinMarketCap, showing a 3.17% increase in the last 24 hours but a 16.74% decrease over the past week. The market capitalization stood at $5.3 billion, reflecting a 3.17% rise in the last 24 hours, while market volume decreased by 35.8% to $860 million during the same period.

On-Chain Analysis

AMBCrypto analyzed Santiment's Active Addresses and circulation data, noting a surge in daily active addresses and transaction volumes over the past few weeks. This data suggests a potential bullish rally, with active addresses experiencing several spikes, some surpassing 200,000 in a 24-hour period. Further analysis of Santiment's ratio of daily on-chain transaction volume in profit to loss showed the data skewed heavily towards profit, indicating increased user activity and potential accumulation.

Technical Analysis

The daily PEPE/USD chart revealed that the recent pullback has found support along an ascending trendline, indicating that the uptrend may soon resume. The Stochastic RSI was oversold at the time of analysis, potentially signaling a price reversal. Moreover, the MACD histogram had crossed above the signal line, suggesting a potential bullish crossover.

Trading Opportunity

Considering the dip, PEPE's current situation might present a potential buying opportunity. The surge in active addresses and transaction volumes provides a major bullish signal. The strong support along the ascending trendline and oversold conditions on the Stochastic RSI further affirm this bullish sentiment, suggesting more investors are considering buying the dip. However, if the support fails to hold, PEPE could see further declines in its price.