PEPE Price Enters Oversold Levels On Daily Timeframe, Here’s What Happened The Last Two Times

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The recent downturn that has swept across the entirecrypto market has pushed meme coin PEPE into oversold territory, according to the Relative Strength Index indicator. Notably, this is only the third time PEPE has reached the oversold levels in its history, particularly on the daily candlestick timeframe. 

Historical data shows that in the previous two instances, PEPE’s price movement followed a specific pattern, leading to a strong recovery after a period of consolidation. As such, the recent PEPE price crashmight be the first step before an incoming bull price action. PEPE Oversold Condition Is A Rare Market Event: What Happened The Last Two Times?

PEPE hasn’t had much history to go by, as it is one of the youngest meme coins with a large market cap. However, over the past year and a half since its launch, PEPE has rarely dipped into oversold territory on the Relative Strength Index (RSI). This makes its current oversold status a significant event in technical analysis, as it has only happened twice before. An oversold condition iswhen the selling pressure on a crypto becomes too much in a short period, which causes the RSI indicator to fall below 30. Related Reading PEPE Price Enters Oversold Levels On Daily Timeframe, Here’s What Happened The Last Two Times 51 minutes ago

In both previous instances where PEPE became oversold, the price entered a consolidation phase lasting approximately one month before rebounding with a strong uptrend. This pattern is evident in a PEPE daily candlestick chart shared on social media platformX by crypto analyst Obi (@obi_eths), which illustrated the meme coin’s historical response to oversold conditions. BTC’s consolidation phase | Source: Obi on X

As shown by the chart below, the first time the meme coin became oversold was in September 2023, four months after its launch. Notably, the oversold condition was followed by 31 days of consolidation before PEPE eventually shot up to new all-time highs in the weeks after. 

A similar trend occurred in August 2024, when PEPE entered into an oversold condition for the second time. This was followed by another 31 days of consolidation up until September 6, when another uptrend began. Accumulation Phase? What To Expect Next

With PEPE now entering another oversold condition, historical patterns suggest that the meme coin could remain in a consolidation phasefor at least the next month. If past trends repeat, this period could serve as an accumulation window for investors who are willing to exercise patience and position themselves ahead of a potential rally. Related Reading PEPE Price Enters Oversold Levels On Daily Timeframe, Here’s What Happened The Last Two Times 51 minutes ago

The timeline for this anticipated surge should begin on March 10, which is exactly 31 days after PEPE entered the recent oversold condition. From here, the meme coin could attempt to mirror its past rebounds by staging an extended move that could push its price beyond its current all-time high of $0.00002803, which was recorded on December 9, 2024. 

At the time of writing, PEPE is trading at $0.000009544, 65.8% below this all-time high. PEPE trading at $0.0000095 on the 1D chart | Source: PEPEUSDT on Tradingview.com Featured image from Shutterstock, chart from Tradingview.com