PEPE's price may be setting up for a turnaround. The meme coin's Relative Strength Index dropped to 25.32 on Thursday, slipping deep into oversold territory. That level often marks the end of a downtrend, and chart patterns now hint at a potential reversal that could lift the token by as much as 50% over the next three to four weeks.
Why the RSI Drop Matters
The RSI is a momentum oscillator that measures the speed and change of price movements. Readings below 30 are generally considered oversold, suggesting the asset has been sold off excessively and may be due for a bounce. PEPE's RSI at 25.32 is well below that threshold. While oversold conditions don't guarantee an immediate rally, they do signal that selling pressure is exhausting itself. Traders often watch for a pivot higher once the RSI turns up from these levels.
Bollinger Band Squeeze Adds to the Case
PEPE's Bollinger Bands, which plot a moving average with two standard deviation lines, have begun to narrow. That contraction — often called a squeeze — indicates that price volatility is decreasing and a sharp move in either direction may be imminent. When a squeeze occurs while the RSI is oversold, the bias tends to favor a move to the upside. The combination of these two indicators has historically preceded significant price swings for many assets, and PEPE is now showing the same setup.
Projected Target and Timeframe
Based on the current chart pattern, technical analysis points to a rally target between $0.000015 and $0.000018. That would represent a gain of roughly 50% from current prices. The move is expected to play out over the next three to four weeks, assuming the broader market environment remains stable. Resistance levels above the current price will need to be broken to confirm the pattern. If momentum builds, the upper end of the target range could be reached sooner.
For now, traders are watching for a daily close above a short-term moving average as the first sign of confirmation. Without that, the oversold reading alone may not be enough to spark the rally. The coming sessions will determine whether the squeeze delivers on its promise.
