The frog-themed meme coin PEPE, once part of the elite club of the 20 biggest cryptocurrencies, has lately been a pale shadow of its former success.
While its price has collapsed by 55% over the past year, one important indicator suggests a substantial rebound could soon make the bulls happy.
A Major Pump at Last?
PEPE was crypto’s rock star towards the end of 2024 when its valuation stood at $0.00002803, while its market cap shot above $10 billion. The bear market over the past several months, though, has not been kind to the meme coin, which currently trades at around $0.000003304 (per CoinGecko’s data), whereas its capitalization has shrunk to $1.4 billion.
However, according to Ali Martinez, a major recovery might be on the way. The analyst noted that the TD Sequential indicator has flashed a buy signal, which could open the door to a rally to as high as $0.000005. Such a pump would represent roughly a 50% increase from the ongoing levels.
It is important to note that this technical analysis tool has been quite accurate in the past. Toward the end of September last year, it flashed two buy signals, and PEPE’s price soared by double digits in the next few days. However, the uptick was short-lived and quickly replaced by a sharp correction.
Other market observers who recently analyzed the meme coin include X users The Penguin and Crypto Candy. The former described PEPE’s chart as “probably one of the most picture-perfect” ones from an Elliott Wave standpoint. They believe the formation signals a macro bottom, which could be followed by a major rally. For their part, Crypto Candy expects “some move” in the short term.
The recent PEPE exchange netflow hints that a resurgence could indeed be in the cards. Over the past weeks, outflows have exceeded inflows, suggesting that investors are deserting centralized platforms and moving their holdings to self-custody. This, in turn, reduces the immediate selling pressure.
The Bearish Scenario
Despite the aforementioned optimism from analysts and technical indicators, the entire crypto sector has been suffering amid the bear market, while interest in meme coins has significantly diminished. This means tokens like PEPE may see further declines in the near future.
X user Surya analyzed the coin’s recent performance and concluded it looks “weak.” He believes that a rejection at around $0.00000345 could result in a 7% decline.
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