PEPE has been trading sideways for months now. After hitting new all-time highs multiple times in May, the price entered a long correction. This week alone has been another bad one for the 3rd largest meme coin as PEPE lost 12% of its value.

And just like that, PEPE went from a $7 billion market cap in May to around $3 billion now.

Analyst “Crypto Patel,” who’s very popular especially on CoinMarketCap recently with his technical analysis on top altcoins, predicts PEPE is preparing for another 60-70% drop.

PEPE Price Analysis

Patel’s chart shows that PEPE/USDT had a bullish run in early 2024. However, it’s now in a correction phase, with the price trending downward within a descending channel marked by two yellow lines.

A critical support line, represented by a blue line on the chart, indicates a previous uptrend that acted as a support level. The price bounced off this line multiple times during the upward phase, showing its significance. However, it has recently been broken, suggesting a potential shift from support to resistance.

Source: CoinMarketCap/CryptoPatel

The chart also highlights a resistance zone around the $0.000011 level. The price has tested this zone multiple times but failed to break through convincingly. This failure has reinforced the bearish sentiment.

At the top of the chart, a dotted yellow line marks the All-Time High (ATH) level. The current price is far below this level, indicating a significant retracement from the peak.

Read also: How High Can Ripple (XRP) Price Go? Is a $50 Target Realistic?

PEPE Price Prediction

The yellow trendlines form a descending channel, indicating the current bearish trend. The price is consistently making lower highs and lower lows within this channel, which aligns with Patel’s bearish outlook.

A strong support zone around $0.000003 is represented by a green box on the chart. Patel considers this level as a key area to watch for a potential bottom, should the price continue to decline.

As of the latest data on the chart, the price is $0.00000781, sitting just below the resistance line of the descending channel. Patel’s warning is based on the price being below the red box resistance, suggesting a potential drop of 60%-70%. This aligns with the bearish descending channel formation.

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The chart includes a hypothetical price path indicating a possible decline towards the green support zone around $0.000003. If this plays out, it would result in a big correction, matching Patel’s PEPE price forecast.

Neither Ethereum’s ecosystem nor the meme coin sector is hot right now, and PEPE is part of both. As long as this remains the case, we agree with Patel’s analysis and don’t expect any major upward moves from PEPE. All in all, PEPE is likely a meme coin to avoid right now.

Read also: Meme Coin Shiba Inu (SHIB) Crashes 25%: What’s the Next Big Crypto to Buy?

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