The recent decline of Pepe coin's price below a crucial long-term support level has raised concerns about its future prospects. Despite its resilience in the current market downturn and its reputation as a strong meme coin, Pepe now faces potential further declines. If it fails to reclaim its support, the outlook for Pepe could be bleak, particularly with a significant amount of tokens at risk of becoming unprofitable if bearish trends continue.
Will Pepe Coin Price Sink Further?
Pepe's recent price action indicates a notable downtrend, characterized by lower highs and lower lows in the 4-hour timeframe. Key support and resistance levels for Pepe include:
Resistance 1 (R1): 50-day exponential moving average (EMA) at $0.00000874
Resistance 2 (R2): 200-day EMA at $0.00001033
Support 1 (S1): Previous low at $0.000007
Support 2 (S2): Psychological zone at $0.000006
If Pepe fails to break above the current resistance levels, it could drop by 21% to $0.000006.
Recent candlestick patterns suggest a bearish continuation, with a potential bear flag formation indicating further downside. The prevailing downtrend implies that Pepe is in a corrective wave pattern, with bearish momentum likely to continue.
Technical Indicators and Market Sentiment
EMAs: The price is below both the 50 EMA ($0.00000878) and the 200 EMA ($0.00001033), indicating strong bearish momentum.
Relative Strength Index (RSI): At 47.45, slightly below neutral but not oversold, suggesting room for more downside.
Chaikin Money Flow (CMF): At -0.04, indicating modest selling pressure.
A classic bearish divergence is evident as the volume has decreased since August 5, despite an upward price trend, suggesting a possible continuation of the downtrend. However, if Pepe rises above $0.00001031, it may invalidate the bearish thesis and signal a strengthening market, potentially rising to $0.000012 and $0.0000135, marking the next major resistance zones.
On-Chain Metrics and Risk Zones
Coinalyze data reveals a 5.8% decline in Pepe's open interest (OI) in the last 24 hours, down from 9.7% the previous day. This drop in OI, coupled with consolidating prices, signals potential downside for Pepe. Increased selling pressure puts Pepe holders in a challenging position, with 17.28 trillion tokens (out of 241.52 trillion) at risk of falling underwater if bears prevail.
Currently, 57.8% of Pepe holders are in profit. However, a downward shift could reduce this number to 50.6%. If the market turns bearish, over 10 trillion tokens currently near the resistance zone could shift into profitability, impacting the overall holder sentiment.
In summary, Pepe coin's price faces significant challenges with potential for further declines. Investors should closely monitor technical indicators and market sentiment to navigate this volatile period.
Notice:
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