NOIDA (CoinChapter.com)— The short answer to the question, is it the right time to buy Pepe (PEPE) coin, would be no. The Pepe crypto price faces bearish risks from technical setups that could spell serious losses for the token.
Bearish Risks Compound For PEPE
The PEPE USD pair has formed a bearish technical setup called the ‘head and shoulders pattern.‘
Market participants have traditionally considered the Head and Shoulders pattern a significant reversal configuration in technical analysis. Therefore, the pattern signals a potential shift from an uptrend to a downtrend in market prices.
PEPEUSDT pair formed a bearish pattern with a 60% downside target. Source: Tradingview
Three distinct and consecutive peaks on a chart form the pattern, with the central peak, known as the Head, standing taller than the two flanking peaks, called the Shoulders.
The first Shoulder forms when prices peak and retreat to a level of support, which later acts as the ‘Neckline‘ for the entire formation. Moreover, following this initial decline, prices surge to create the highest peak, the Head, before retreating to the level of the Neckline.
Finally, the rise and subsequent fall of the second Shoulder completes the pattern, which typically aligns in height with the first shoulder and returns to rest at the neckline.
Breaking below the Neckline confirms the pattern, with the price target equal to the distance between the highest point of the Head and the Neckline. Per the rules of technical analysis, PEPE USDT coin pair price risks dropping 60.5% from the Neckline to reach the theoretical price target near $0.00000303.
Moreover, zooming in on the daily price chart gives rise to another bearish cue for the Pepe coin.
PEPE price is moving inside a descending channel.
The memecoin is trading inside a descending price channel. As such, if the PEPE USD pair drops to test the channel’s support line, the memecoin would end up near $0.00000525, shedding over 31% along the way.
The two bearish patterns might lower the PEPE price, resulting in only losses for the token’s buyers.
Downtrend Continues For PEPE Crypto
Meanwhile, PEPE crypto has been in a downtrend since Aug . 25, losing over 21% to a daily low of nearly $0.0000075 on Aug. 28. The downtrend might have led traders to look to buy the dip, asking themselves if it was the right time to buy PEPE coin.
PEPEUSDT daily price chart with RSI.
If the downtrend continues, the PEPE coin price might test the support levels near $0.0000068 and $0.0000059.
On the other hand, an uptrend form here would see the memecoin’s price face the resistance levels near $0.0000086 and $0.00001 before retreating.
The RSI for PEPE coin remained neutral, with a score of 42.02 on the daily charts.
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