Three Days of Decline and a Broken Bullish Trend
The price of the meme coin Pepe (PEPE), the third-largest meme coin globally, has fallen for three consecutive days. This decline invalidated the previous bullish pattern and established a bearish trend. Pepe dropped to $0.00002117, its lowest level since December 6.
This drop aligns with broader losses across the cryptocurrency market. Bitcoin (BTC) fell to $104,400, retreating from its all-time high of $108,000. The total cryptocurrency market capitalization decreased by 5%, now standing at $3.82 trillion.
High Trading Volume
Pepe has experienced significant price movements in a high-volume trading environment. According to CoinGecko, its 24-hour trading volume reached $2.2 billion, far surpassing the $725 million recorded by its competitor Shiba Inu (SHIB).
Impact of the Federal Reserve's Decision
The cryptocurrency market is currently awaiting the upcoming Federal Reserve (Fed) decision on interest rates. This decision could set the tone for 2025. Analysts predict that the Fed will cut rates for the third time this year and signal a pause in 2024.
Historically, risk assets like stocks and cryptocurrencies tend to perform well during rate cuts and dovish stances from central banks.
"Smart Money" Exits Pepe Market
Data from Nansen indicates that smart money is withdrawing from the Pepe market. The number of tracked smart-money traders holding Pepe dropped from 115 to 95 over the past two weeks. Their collective balance of Pepe decreased from 8 trillion tokens to 7.5 trillion tokens over the last month.
Pepe Price Analysis: Bearish Signals on the Chart
The daily chart shows a strong bearish trend for Pepe coin. Initially, a falling wedge pattern was forming, which is typically a bullish indicator. However, this pattern has now been invalidated.
Additionally, the coin has fallen below the upward trendline that connected the lows since November 26. It also formed a three black crows pattern, characterized by three consecutive bearish candlesticks, signaling continued downward momentum.
Potential Price Developments
In the near term, Pepe’s price may continue to decline. The bearish trend will strengthen if the price falls below the 50-day moving average at $0.00001933 and the Ichimoku cloud.
Conversely, a bullish reversal could occur if the coin surpasses the key resistance levels at $0.000026 (the swing high from November 14) and the all-time high of $0.00002833.
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