In the face of a bearish market, PEPE has remarkably sustained its stance above a crucial support level. The altcoin's potential recovery from recent price drops is bolstered by investors' hesitation to sell in large volumes, creating a buffer against further declines.
Over recent weeks, a steady decline in active deposits has been observed, nearing a standstill. This decline signals reduced selling pressure from holders, with lower active deposits generally indicating a lesser inclination to liquidate assets.
Consequently, PEPE finds room to stabilize and potentially recover. In the midst of challenging market conditions, reduced selling activity becomes a pivotal element supporting a possible price rebound. As deposit inactivity persists, the altcoin is strategically positioned to consolidate and regain upward momentum.
The analysis originates from BeInCrypto, noting that despite market challenges, investors exhibit steadfast support for PEPE, aiming for a rebound amid reduced selling activity.
PEPE's broader momentum is heavily influenced by its Network Value to Transactions (NVT) Ratio, which has recently seen a spike. An elevated NVT Ratio suggests heightened network activity relative to transactional activity, often resulting in corrective price actions. This has been a contributing factor to PEPE's struggle for recovery amid prevailing bearish trends. As the NVT Ratio stabilizes, aligning more closely with transaction volume, the meme coin could potentially find the necessary support for a rebound.
In recent trading, PEPE has not reclaimed the $0.00001785 support level, following a significant 21% correction last week. Currently trading at $0.00001646, this level stands as a critical support floor for recovery prospects. Despite repeated challenges, PEPE has successfully maintained $0.00001696 as support, emphasizing its importance. Retaining this level could enable the altcoin to aim for $0.00002062. The decline in selling activity lends credence to a positive outlook, providing a base for upward momentum.
However, should PEPE fail to surpass $0.00001785 and establish it as support, its ability to hold $0.00001696 could be compromised. A breach below this crucial support level would undermine the bullish-neutral perspective, possibly leading to a further decline to $0.00001489, thereby dampening investor optimism.