Rare Pepe Coin Price Pattern Hints 35% Crash

by

As an experienced analyst with a knack for deciphering complex market patterns and a keen eye for spotting trends, I find myself cautiously bearish about Pepe Coin’s immediate future. The formation of a Bearish Flag pattern on the daily chart, coupled with a drop below the 50-day EMA, is a worrying sign that suggests potential downside of approximately 35%.

The value of Pepe coin has plummeted significantly, erasing most of its gains achieved earlier this month when it reached an all-time high. Although the price has been relatively steady over the past few days, a peculiar chart configuration on the daily graph suggests a possible 35% drop could occur. Moreover, the activity in Pepe’s futures market indicates a potential further decline in the immediate future.

Pepe Coin Price Bearish Flag Points To More Downside

Currently, Pepe Coin’s price is struggling under heavy bearish pressure and has fallen below its 50-day Exponential Moving Average (EMA) on the daily chart following a plunge. This drop occurred after the coin created a doji candlestick pattern on December 9, which was when it reached an all-time high. A doji is a type of reversal candle with a small body and long upper and lower wicks.

Currently, Pepe’s price is gradually shaping a chart pattern known as a “bearish flag,” which is often a sign of a continuation in a downward trend. This pattern resembles a small rectangle after a tall vertical line, similar to a flagpole. If this bearish breakout occurs, it could potentially push the coin’s price down to $0.00001437, its lowest point from last week.

The price of Pepe Coin could potentially decrease to a significant support point: $0.00001190, marking its peak from September 29, approximately 35% lower than the current value. It’s important to note that there is a possibility of further declines due to the formation of a double-top chart pattern at $0.00002563, along with some unsuccessful breakouts, which led it to reach an all-time high.

Instead, if the price surpasses the resistance at $0.000020, which was its peak on December 21 and slightly beyond the 50-day moving average, it would invalidate the bearish flag pattern, leading to further increases possibly reaching the double-top pattern at $0.00002563.

Pepe Futures Open Interest Has Crashed

One factor that could emphasize the bearish Pepe coin price forecast is that futures open interest has crashed hard in the past few days. This interest peaked at $359 million earlier this month when the coin peaked at an all-time high. 

Pepe’s current interest has fallen below $123 million, which is its lowest point since November 4. This figure represents unfilled orders in the futures market. A significant decrease in these orders might indicate decreasing demand, but in other situations, a low interest could potentially lead to further gains, as demonstrated on November 5 when it dropped to $108 million.

If Bitcoin‘s current price drop persists, it’s anticipated that Pepe’s price decrease could speed up. Typically, many altcoins tend to mirror the trend of Bitcoin, much like last week when most of them dipped as Bitcoin fell below $100,000.

Read More

2024-12-23 13:59