- PEPE faced a critical support test, with $0.0000730 being a key level for recovery.
- Declining Social Volume and rising NVT Ratio signaled potential overvaluation and bearish pressure.
The cryptocurrency market is currently facing a volatile phase, with Pepe [PEPE] testing critical support levels after a recent surge. This shift in momentum has raised concerns among traders, especially as the altcoin finds itself in a pivotal moment.
At press time, PEPE was trading at $0.00007297, showing a sharp 14.10% decline in the last 24 hours.
The altcoin’s performance over the coming days could shape its future, making it crucial to evaluate both the technical factors and market sentiment influencing its movement.
Key price levels to watch for PEPE’s potential reversal
PEPE’s price is now testing a critical support zone that aligns with both the trendline and previous breakout levels.
The price point at $0.0000730 is a key level, that traders should closely monitor. If PEPE can hold above this support, a bullish reversal could occur, with the next resistance target at $0.0000890.
However, if the price breaks below this level, PEPE could see a further decline towards the $0.0000600 region. Therefore, PEPE’s future largely depends on whether it can maintain this crucial support level or if it will break down further.
Declining Social Volume: What does it mean?
The Social Volume has dropped significantly in recent weeks, now at just 17. Additionally, Social Dominance stood at 0.266%, as of press time, after a sharp decline from previous highs.
This drop signals that market interest in PEPE is weakening, which could lead to reduced buying pressure.
Therefore, this decline in social metrics could prevent PEPE from recovering, further contributing to its downward momentum if this trend continues.
Unless there is a rebound in social activity, it may struggle to generate the enthusiasm needed for a recovery.
Source: Santiment
Rising NVT Ratio: Is PEPE overvalued?
The NVT ratio has risen to 69.95, indicating a growing disparity between its market value and transaction volume. This sharp increase suggests that PEPE may be overvalued, as sufficient network activity does not support its price.
Typically, a high NVT Ratio signals the possibility of a price correction. As a result, investors should exercise caution, as the memecoin may be due for a downward adjustment if the overvaluation continues.
Source: Santiment
Bulls vs. bears: Who has the upper hand?
PEPE has experienced a balance between bulls and bears over the past week, with 130 bulls compared to 127 bears. While the bulls currently hold a slight advantage, recent market fluctuations indicate mixed sentiment.
The ongoing battle between bulls and bears suggests uncertainty in its direction, with neither side firmly in control.
Therefore, traders should closely monitor price movements, as the market could shift rapidly depending on the outcome of this contest for dominance.
Source: IntoTheBlock
Is PEPE set to recover or decline further?
PEPE’s ability to hold the $0.0000730 support level will likely determine its immediate future.
While bearish indicators like declining social metrics and the rising NVT ratio point toward further downside, the support zone offers a potential foundation for a rebound.
However, without a shift in market sentiment or a significant surge in buying activity, PEPE will likely continue to face pressure and could decline further in the short term.
