PEPE: A daily candlestick above $0.0000124 would disprove bearishness
On Tuesday, pepe price will test its rising trendline support. A daily closing below it would confirm a downturn.
On-chain data shows PEPE's active addresses falling, indicating lesser network demand.
On Tuesday, Pepe (PEPE) price tested its ascending trendline support and on-chain data showed weaker network demand, suggesting a price drop.
Pepe could breach rising trendline
Pepe price is challenging upward trendline support. See the one-day chart below for the trendline combining many swing low levels between mid-April and mid-June.
Pepe might drop 18% to $0.0000903 if it falls below the trendline. This is the 61.8% Fibonacci retracement level from April 13's $0.0000393 swing low to May 27's $0.0000172 swing high.
On the daily chart, the Relative Strength Index (RSI) and Awesome Oscillator (AO) are below their mean values of 50 and zero, supporting this bearish situation. This signals ongoing bearish momentum, which might lower PEPE's price.
PEPE may break below $0.0000903 and fall 34% to revisit its May 1 low of $0.0000592 if bears are active and the crypto market outlook is bearish.
On-chain data also predicts PEPE price decline. At an average price of $0.000011, 1,400 addresses acquired 17.94 trillion PEPE tokens, according to IntoTheBlock's IOMAP. If the price increases to this level, many investors may sell to breakeven.
Technical analysis shows that the $0.000011 resistance level matches IOMAP results, making it a key reversal point.
PEPE's Daily Active Addresses have declined 25% in the previous 10 days, prolonging a slowdown that began in May. This reduction suggests PEPE's network demand is declining, which might cause a price collapse.
On-chain data and technical analysis suggest a pessimistic prognosis, however if Pepe's price closes above $0.0000125, the June 16 high, it would falsify the bearish thesis. PEPE's price might rise 22% to the next resistance level at $0.0000152, the June 6 high.
