PEPE Coin Climbs 18% as Crypto Market Recovers, But Volatility Remains a Concern

PEPE Coin Climbs 18% as Crypto Market Recovers, But Volatility Remains a Concern

Over the last 24 hours, the cryptocurrency market has experienced a modest recovery, bouncing back from Monday’s steep decline that pushed many assets to multi-year lows. This upward movement has notably benefited the meme coin sector, with its market capitalization increasing by 18%.

Meme-based tokens, including Pepe (PEPE), have seen their prices surge by double digits within the past day. However, given the ongoing market volatility, these gains might be temporary.

Pepe’s Rally Lacks Strong Support

As of this writing, the frog-themed meme coin PEPE is trading at $0.0000081, marking an 18% increase over the past 24 hours. Its trading volume has also spiked, reaching $2.18 billion—a 50% rise during the same period.

Despite this uptick, a closer analysis of PEPE’s daily price chart suggests the potential for a near-term decline. The market’s high volatility is evident, as indicated by the widening gap between the upper and lower bands of the Bollinger Bands—a key volatility indicator.

Bollinger Bands are used to gauge market volatility and identify potential overbought or oversold conditions. A wider gap between the bands signals heightened volatility.

Currently, PEPE is trading below the lower band of this indicator, which could indicate a continuation of its downward trend.

Supporting this outlook, the token’s Awesome Oscillator remains in negative territory, continuing to show red bars despite the recent price surge. The Awesome Oscillator measures market momentum, and red bars suggest that bearish momentum persists, putting PEPE at risk of losing its recent gains.

Additionally, the recent price rally appears to lack substantial demand. PEPE’s Relative Strength Index (RSI) is currently at 39.93, below the neutral 50 line, indicating stronger selling pressure than buying interest.

PEPE Price Prediction: Demand Surge Crucial for Sustained Growth

If PEPE detaches from the broader meme coin market uptrend and demand continues to wane, its price could drop to $0.0000058, representing a 28% decrease from its current level.

On the other hand, should demand increase and market sentiment shift from bearish to bullish, PEPE could see its price rise to $0.0000085.