Pepe Drops 1.807% Amid Market Correction, Bullish Sentiment Persists

Pepe's latest price was $0.05, down 1.807% in the last 24 hours. The meme coin has been experiencing a corrective phase after a significant surge over the past month. This drop is part of a broader market correction, and analysts suggest that the asset is likely to stage another upward move, adding to the existing bullish sentiment. The meme coin has traded into the mid-range of the Bollinger Band on the daily chart, a level that can act as either support for a breakout or resistance preventing further rallying. Historical data shows that the last time Pepe traded in this zone, it rallied to the upside, suggesting a potential rebound from this level.

Liquidity inflow into Pepe remains elevated, as indicated by the Money Flow Index (MFI). The mfi measures the inflow and outflow of liquidity into an asset, and a reading above 50 reflects healthy liquidity inflows. At the time of analysis, the MFI stood at 72.01, suggesting strong liquidity support that could ignite Pepe's uptrend. However, further analysis shows that a price decline is possible if the meme coin rallies into overhead resistance. If Pepe continues its upward movement, it will likely enter a supply zone that could trigger a price cascade. If market momentum stays strong, Pepe could breach this supply zone and extend its rally. However, if selling pressure builds before Pepe gains upside traction, the price is likely to drop further. There are three key support levels to watch, i.e., $0.00000734, $0.00000645, and $0.00000578. At any of these levels, Pepe could attempt a rebound to the upside.

The market remains divided on the likely direction for Pepe. On one hand, traders in the futures market are leaning bullish, as shown by the rising Open Interest Weighted Funding Rate. Over the past 24 hours, this metric rose to 0.0121%, a significantly high level associated with bullish market activity. The simple interpretation is that the majority of futures contracts currently open are long positions. Surprisingly, spot traders have been selling. On the flip side, spot traders weren’t as convinced. They offloaded $2.65 million worth of Pepe at the time of writing—a sharp pivot after several days of buying activity. If this selling trend continues, Pepe could see a sharp drop to lower regions highlighted on the chart. Ultimately, for the next major market movement to materialize, sentiment must shift decisively in one direction.