The famous memecoin Pepe (PEPE) reached a record high of $0.000025 on November 14, but has since dropped 20% due to increased profit-taking activity.
Currently trading at $0.000020, the indicators on the price chart suggest the potential for further decline. This analysis identifies key price levels that token holders need to pay attention to.
Pepe sellers establish dominance. On the daily chart of PEPE/USD, the Chaikin Money Flow (CMF) indicator for this coin is about to cross above the 0 threshold. At the time of writing, this momentum indicator is above the centerline.
CMF is an indicator that measures the accumulation and distribution of an asset by comparing price movement with trading volume over a certain period. When this indicator declines, it signals that there is more distribution (selling pressure) than accumulation (buying pressure), indicating that bullish momentum is weakening.
If PEPE's CMF ultimately falls below the 0 threshold, it will confirm a trend reversal and signal the return of bearish momentum, adding further downward pressure on the price.
PEPE CMF. Source: TradingView
Additionally, the Moving Average Convergence Divergence (MACD) of PEPE also confirms this bearish trend. At the time of writing, the MACD line (green) of the token is below the signal line (orange).
This indicator measures the price trend and momentum of the asset, identifying potential reversal points. In the case of PEPE, when the MACD line is below the signal line, the token price is experiencing bearish momentum, signaling a profit-taking opportunity for traders.
PEPE MACD | Source: TradingView
