Since mid-August, the cryptocurrency market has been facing increased selling pressure, leading to significant corrections in prices across various digital assets. One such affected asset was the Frog-themed memecoin, PEPE, which saw a considerable decline in its price, providing an accurate reflection of the current market sentiment. As prices continue to plummet, there is an increasing threat of another breakdown from the key support level, which may suggest that PEPE is in for further downfall.
Pepe Coin’s Daily Chart: Major Observations
- The formation of the V-top pattern highlights a potential change from bullish to bearish sentiment, which could likely indicate an extensive trend reversal.
- The PEPE price may suffer a 22% drop if there’s a possible breakdown below the $0.00000105 mark.
- The 24-hour trading volume of Pepe coin sits at $48.6 Million, spelling a 27.5% loss.
Source: Tradingview
After soaring to the $0.00000147 mark, a dramatic reversal took place with the PEPE price, plummeting it by 29%. This sharp decline formed what many refer to as a “V-top” reversal pattern. The escalated volume that followed this decrease shows an extensive selling pressure, which was a crucial factor in pulling the price down.
On August 19th, the PEPE price exhibited some potential for a rebound as it formed a morning star candlestick pattern. However, the lack of substantial follow-through in terms of price movement following the candle setup has led to concerns about the strength of the bullish momentum.
As of this writing, PEPE is trading at $0.00000108, reflecting an intraday loss of 3.57%. This loss accentuates the ongoing selling pressure that continues to torment the token. With the price trading just above the $0.00000105 support level, it is at risk of another breakdown. Such breakdown could further decrease the price by approximately 22%, potentially bringing it down to a low of $0.0000081.
Will Pepe Coin be Able to Maintain the $0.00000105 Level?
The question remains, despite the negative pressure, can Pepe coin sustain its price? This memecoin has managed to bounce twice from the $0.00000105 mark within a single month, indicating the active accumulation of buyers. And the 78.6% Fibonacci retracement level aligns at the same path, thereby increasing the support strength of this level. However, if the buyers can maintain above this support, the altcoin might have an opportunity to try for recovery and potentially reach the $0.00000147 peak again.
- Average Directional Index (ADX): An increase in the daily ADX slope indicates that the sellers might have enough momentum to extend this downfall.
- Bollinger Band: The declining lower band of the Bollinger Band indicator suggests that the selling momentum is still forceful.
