The current downturn that has swept across the entire crypto market has pushed meme coin PEPE into oversold territory, in accordance with the Relative Energy Index indicator. Notably, that is solely the third time PEPE has reached the oversold ranges in its historical past, significantly on the each day candlestick timeframe.
Historic knowledge exhibits that within the earlier two situations, PEPE’s worth motion adopted a particular sample, resulting in a robust restoration after a interval of consolidation. As such, the recent PEPE price crash is perhaps step one earlier than an incoming bull worth 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 among the youngest meme cash with a big market cap. Nevertheless, over the previous 12 months and a half since its launch, PEPE has not often dipped into oversold territory on the Relative Energy Index (RSI). This makes its present oversold standing a big occasion in technical evaluation, because it has solely occurred twice earlier than. An oversold condition 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 beneath 30.
Associated Studying
In each earlier situations the place PEPE grew to become oversold, the worth entered a consolidation part lasting roughly one month earlier than rebounding with a robust uptrend. This sample is obvious in a PEPE each 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 beneath, the primary time the meme coin grew to become oversold was in September 2023, 4 months after its launch. Notably, the oversold situation was adopted by 31 days of consolidation earlier than PEPE ultimately shot as much as new all-time highs within the weeks after.
The same development 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 Part? What To Count on Subsequent
With PEPE now coming into one other oversold situation, historic patterns counsel that the meme coin may remain in a consolidation phase for a minimum of the subsequent month. If previous traits repeat, this era may function an accumulation window for traders who’re keen 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 current oversold situation. From right here, the meme coin may try to mirror its previous rebounds by staging an prolonged transfer that might push its worth 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% beneath this all-time excessive.
Featured picture from Shutterstock, chart from Tradingview.com
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