As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull runs and bear markets. The current situation with Pepe coin is concerning, but not entirely unexpected given the volatile nature of meme coins.
Despite the current market slump, Pepe Coin has proven to be quite robust. Known as the meme coin with the strongest organic growth, its price trend has generally been positive. However, recently it dropped below a significant long-term marker, and if it can’t bounce back above this level, its future could be uncertain. This is concerning because many Pepe Coins might become worthless if the bear market continues for Pepe.
Will Pepe Coin Price Sink Further?
Pepe’s price movement indicates a substantial decrease, as evident by the succession of lower peaks (higher highs) and troughs (lower lows) over the past few hours. Notably, there are crucial support and resistance levels in these areas:
- Resistance 1 (R1): 50-day exponential moving average (EMA) ($0.00000874)
- Resistance 2 (R2): 200-day EMA ($0.00001033)
- Support 1 (S1): Previous low ($0.000007)
- Support 2 (S2): Psychological zone ($0.000006)
If the value of Pepe coins doesn’t manage to surpass its present resistance point, there’s a possibility that it could fall by approximately 21%, reaching around $0.000006.
As an analyst, I’ve observed a bearish continuation pattern emerging from the recent candlestick formation, following a short period of consolidation. This suggests that there may be more downward movement to come, much like a potential bear flag in our chart.
Given the current trend, it appears that Pepe might be experiencing a corrective phase characterized by downward movements, possibly extending due to ongoing bearish pressure.
Based on the current technical analysis, it appears that the value of Pepe Coin might drop further in the near future.
The current price is lower than both the 50 Exponential Moving Average ($0.00000878) and the 200 Exponential Moving Average ($0.00001033), suggesting a significant downward trend. Meanwhile, the Relative Strength Index (RSI) stands at 47.45, just below the neutral zone, suggesting there’s potential for further price decreases as it’s not yet considered oversold.
In simple terms, the Chaikin Money Flow (CMF) indicator, used to measure buying and selling activity on an asset, currently stands at -0.04, indicating a slight dominance of sellers over buyers, signifying modest selling pressure.
Since the 5th of August, the volume has reduced, but the cost has been climbing steadily. This is often a sign known as bearish divergence, suggesting there might be a potential resumption of the downward trend.
If Pepe surpasses 0.00001031 cents, this could challenge or even disprove the bearish outlook, as it suggests a growing market strength. Furthermore, there’s potential for Pepe to climb even higher, reaching approximately 0.000012 and 0.0000135 cents, which represents a significant resistance level ahead.
On-Chain Metrics Reveal Risk Zones
According to Coinalyze data, the Pepe open interest (OI) has decreased by 5.8% over the past 24 hours compared to yesterday’s level of 9.7%. This drop in OI, along with the stabilizing price trend, indicates a possible decrease in the value of the Pepe coin.
Facing growing demand to sell, Pepe token holders find themselves in a challenging situation. If bears manage to break through the current resistance level, approximately 17.28 trillion tokens (out of the total 241.52 trillion) could potentially drop in value, thereby increasing the number of unprofitable Pepe holders according to IntoTheblock.
At present, about 57.8% of Pepe owners are making a profit. But if there’s a change, this percentage might drop to around 50.6%.
If market conditions become bearish, approximately 10 trillion tokens currently experiencing losses just above the current resistance level might transition into profitability.
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2024-08-08 10:36