Pepe price remains in a deep bear market after plunging more than 75% from its all-time high of $0.000028.
Pepe (PEPE) dropped to $0.000071, mirroring the performance of most meme coins, which have crashed over the past few days.
The ongoing crash occurred as fear spread throughout the crypto market. The closely watched crypto fear and greed index has dropped to the fear zone at 20. Additionally, the CNN Money fear and greed index has moved to the extreme fear zone at 19.
Pepe’s decline coincided with a sharp drop in its futures open interest, which fell to its lowest level in months. Open interest dropped to $200 million on Thursday, down from a January high of $556 million.
Still, there are a few reasons why Pepe’s price may bounce back soon and potentially retest its all-time high.
Pepe, like other cryptocurrencies, has recovered from similar pullbacks in the past. For example, its price fell about 70% from its peak in May last year to its lowest level in August. It also dropped 63% from its high in March and April last year.
The Z-score of the Market Value to Realized Value (MVRV) ratio has also fallen into the opportunity zone. This indicator, which assesses whether a coin is overvalued or undervalued, has dropped to -0.726, its lowest level since October 2023. This suggests that PEPE has become a bargain, signaling a potential rebound.
Pepe price has positive technicals
Additionally, Pepe has some bullish technical indicators that may lead to a strong rebound. The Average Directional Index has remained flat in recent days. This indicator measures trend strength, and a decline suggests that bearish momentum is weakening.
Pepe coin price has also formed a falling wedge chart pattern, a popular bullish formation. This pattern consists of two downward-sloping trendlines that converge. A bullish breakout typically occurs when these lines meet, which appears imminent.
The Relative Strength Index and the Percentage Price Oscillator have also formed a bullish divergence pattern.
All this is happening as the coin sits at a crucial support level where it struggled to drop below in the second half of last year.
Therefore, the Pepe coin price will likely have a strong bullish breakout, with the next point to watch being the all-time high of $0.000028, up by 300% above the current level.
