In the cryptocurrency market, PEPE, a prominent memecoin, has experienced a significant price drop since its all-time high in May. This downturn has led to a correction phase, but recent investor activity suggests a potential recovery and growing confidence in the market. As PEPE strives to reclaim support and surge towards critical resistance levels, investors are eagerly watching its next move.

PEPE's price plummeted by 17% in the first week of June, sparking concerns among investors. However, this decline is seen as a natural response to the memecoin's remarkable 151% growth in May, which propelled it into the top 20 rankings on CoinMarketCap. The subsequent profit-taking frenzy has led to a correction phase, but on-chain insights indicate that this phase may be winding down.

A crucial indicator of the market's sentiment is the trading volume, which has experienced a steep decline since PEPE's price began to fall. While the price has only dropped by 19% from its peak, the trading volume has plummeted by a more significant 72%. This disparity suggests that sellers are becoming increasingly unwilling to sell as the price drops, indicating a potential bullish reversal.

Strategic investors view this decline in trading volume as an early signal of an imminent rebound. With the selling pressure weakening, the market may be approaching a bottom, presenting an opportunity for bulls to initiate a new rally. The current support level of $0.000014 could be the catalyst for this rebound, with the potential for PEPE to reach new peaks above the $0.000020 mark in June.

However, if the bearish momentum persists, PEPE risks losing the critical support level of $0.000014 and falling to the 50-day Simple Moving Average price level at $0.0000010. Investors are closely monitoring the market, eager to capitalize on any signs of a bullish reversal.

The recent approval news of Spot Ether ETF has also fueled the buying momentum in the memecoin market, with PEPE being one of the top performers. Its price has surged over 25% intraday, reflecting a strong bullish momentum. While the MVRV ratio stands at 38%, indicating that most investors have gained significant profits, the technicals of PEPE suggest a continued bullish trend.

In conclusion, PEPE's price drop has sparked concerns, but investor activity suggests a potential recovery and growing confidence. As the market approaches a critical juncture, investors are eagerly awaiting PEPE's next move. Will it reclaim support and surge towards new heights, or will the bearish momentum persist? Only time will tell, but one thing is certain - PEPE remains a memecoin to watch in the cryptocurrency market.