The frog-themed meme token Pepecoin (PEPE) faces significant bearish pressure as it struggles to break past a critical resistance level.
After multiple attempts, PEPE again failed to overcome the critical barrier at $0.000011, raising concerns about a significant price drop. This level has acted as a major hurdle since June, with each effort to surpass meeting resistance.
Also, market activity has been slowing since the start of October, adding to the challenges for PEPE holders. Bears are taking control, creating pressure on the tokenâs future movements.
For those closely watching Pepecoin, this analysis highlights essential trends that could shape its next move.
PEPE Among Top Meme Coin Losers â Could Liquidity Drain Be The Culprit?
Pepecoin (PEPE) has seen a meteoric rise over the past year, recording a staggering 24,646% increase. This incredible growth positioned the meme token as a favorite among retail investors during the meme coin surge.
Even monthly, PEPE continues to show strength, with gains of 15.63%. However, recent performance indicates some concerning short-term trends. Over the last seven days, PEPEâs value dipped by 13.54%. It has dropped by 3.60% over the past 24 hours, reflecting increasing market pressure.
This downturn could be a sign of bears gaining momentum as they try to push prices lower.
Pepecoin (PEPE) has recently positioned itself as a top meme coin loser, with its market value plummeting to $2.88. This decline occurred as the token struggled to regain momentum after failing to overcome the critical resistance level at $0.000011.
While the exact reasons behind this downturn remain unclear, liquidity drain is a potential suspect that could be impacting PEPEâs performance. As investors exit their positions, the resulting decrease in liquidity can exacerbate price volatility, leading to further losses.
If this trend continues, PEPE may struggle to regain its footing in the highly competitive meme coin market.
Death Cross and Dynamic Resistance on PEPE Remains Intact â Can It Recover?
Pepecoin (PEPE) shows several bearish signals in its technical analysis, indicating that it may struggle to regain upward momentum.
The 200-day SMA is above the 50-day SMA, which often signals a long-term bearish trend. This death cross suggests that sellers now have the upper hand, making it challenging for buyers to push prices higher.
Furthermore, in the last five days, PEPE has consistently displayed bearish price action. The asset has fallen below the crucial 200-day SMA, a strong indicator of bearish market sentiment.
Despite being slightly above the 50-day SMA, this position indicates a lack of buying strength. It also raises concerns that PEPE may not have the momentum needed to break out of its current downward trajectory.
Moreover, the Moving Average Convergence/Divergence (MACD) is set to cross below the signal line. This potential crossover could further exacerbate selling pressure in the market.
Additionally, the histogram bars on the MACD chart have faded, suggesting waning bullish momentum.
