PEPE has suffered a sharp downturn, dropping nearly 50% over the past month and reaching its lowest price in three months. Investors have faced significant losses as bearish sentiment grips the meme coin market. 

While the possibility of further correction remains, an emerging technical pattern could also signal a buying opportunity for long-term holders.  

PEPE Is Facing a Bearish Cycle

The exponential moving averages (EMAs) indicate growing bearish pressure, with the 200-day EMA approaching a crossover above the 50-day EMA. This event, known as a Death Cross, is typically a strong bearish signal.

If the crossover occurs, selling momentum could intensify, further dragging PEPE’s price lower.  

Currently, the 200-day EMA is just 8% away from completing the Death Cross formation. If bearish conditions persist, PEPE could struggle to recover in the short term. This technical pattern often leads to extended downtrends across various assets. 

Despite bearish signals, PEPE’s Market Value to Realized Value (MVRV) ratio suggests a possible shift in momentum. The MVRV ratio has reached -29%, placing PEPE within the “Opportunity Zone.”

Historically, when this metric drops between -17% and -30%, it indicates that selling pressure is nearing exhaustion.  

A negative MVRV ratio suggests investors are holding unrealized losses, making them less likely to sell further. This can create an accumulation period where long-term holders start buying at discounted prices.

If this trend follows previous patterns, PEPE price could be setting up for a potential recovery.  

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Author: Aaryamann Shrivastava