Analyzing Pepe’s chances of a bounce back

• The Fibonac­ci lev­el indi­cat­ed that PEPE could be ready for a recovery.
• The token momen­tum remained in a bear­ish state.

Pepe’s [PEPE] per­for­mance might have left hold­ers hang­ing in con­fu­sion. But for traders who have been watch­ing the meme’s tech­ni­cal out­look, it could soon be time for a rebound. Twit­ter-accus­tomed ana­lyst, Alt­coin Sher­pa opined that the meme was already form­ing a mid-term bottom.

How much are 1,10,100 PEPEs worth today?

Back­ing up his view­point with rea­sons, the ana­lyst not­ed that the token was already head­ed toward the .50 Fibonac­ci retrace­ment level.

$PEPE: Noth­ing has changed from my orig­i­nal idea of this chop­ping from here and the .786 fib.

I think that this is form­ing a bot­tom though in the mid term and this is going to go to at least the .50 fib. 

*I still have PEPE and am just sit­ting on that posi­tion for now. pic.twitter.com/CwC73a5gYU

— Alt­coin Sher­pa (@AltcoinSherpa) May 23, 2023

Eyes on the stepping-stone

Need­less to say, the most pop­u­lar retrace­ment lev­els include 23.6%,38.2%, 61.8%, and 78.6%. How­ev­er, the .50 fib or 50% lev­el rep­re­sents a sig­nif­i­cant lev­el of sup­port or resis­tance which could lead to a bounce in the asset price before con­tin­u­ing in the orig­i­nal direction.

In line with Sherpa’s thoughts, PEPE’s weight­ed sen­ti­ment left the neg­a­tive region on 19 May. When this met­ric is pos­i­tive, it means that investors’ hope has renewed.

When the oppo­site occurs, it implies that mar­ket par­tic­i­pants were not opti­mistic about the cryptocurrency’s per­for­mance. Despite that, PEPE’s vol­ume came down to 183.03 million. 

This may, how­ev­er, be detri­men­tal to PEPE’s poten­tial recov­ery since a hike in vol­ume could have pro­vid­ed strength behind the meme value.

Source: San­ti­ment

Mean­while, PEPE’s dai­ly on-chain trans­ac­tion vol­ume in prof­it was 14.19 tril­lion. On the oth­er hand, the dai­ly on-chain trans­ac­tion vol­ume in loss was close to 13.69 trillion. 

With this dif­fer­ence in met­ric, it means a large num­ber of those involved in these trans­ac­tions could not acquire the token when the hype and superb per­for­mance were still in place.

Source: San­ti­ment

PEPE: The bears still have it

At press time, the token had lost 8.16% of its val­ue in the last sev­en days. But how about its momen­tum? Based on the four-hour chart, the Awe­some Oscil­la­tor (AO) was swing­ing below the his­togram line.

The AO, used as an indi­ca­tor to mea­sure recent and his­tor­i­cal mar­ket momen­tum, was zero in the neg­a­tive axis. Often used to com­pare two mov­ing aver­ages, the indi­ca­tor sig­nals that the cur­rent PEPE momen­tum was bearish. 

Read Pepe’s [PEPE] Price Pre­dic­tion 2023–2024

For the Direc­tion­al Move­ment Index (DMI), the tech­ni­cal out­look sug­gest­ed that it could take a long while for PEPE to revive. At the time of writ­ing, the +DMI (green) was at 12.49.  How­ev­er, the ‑DMI (green) was at 25.46.

The Aver­age Direc­tion­al Index (ADX), on the oth­er hand, was at 25.76. And since the ADX (yel­low) was above 25, it indi­cat­ed that there was strength behind the bear­ish direction.

Source: Trad­ingView