Pepe breaks below ascending trendline
Pepe price breaks below ascending trendline on Sunday, highlighting bearish stance
On-chain data shows that PEPE active addresses are trending down, implying reduced network demand
A daily candle above $0.0000124 would refute bearish sentiment.
Pepe (PEPE) broke above ascending trendline on Sunday, suggesting a bearish breakout. The decline in on-chain PEPE active addresses shows reduced network demand, and the frog-themed meme coin's price fell 20%.
Pepe breaks below ascending trendline
Pepe price broke below ascending trendline on Sunday. Refer to the daily chart below for a trendline connecting multiple swing lows from mid-April to mid-June
If this trendline continues to act as resistance for a pullback, a 20% drop from the breakout point to $0.0000903 is possible. This is the 61.8% Fibonacci retracement level from the swing low of $0.0000393 on April 13 to the swing high of $0.0000172 on May 27
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are below their averages of 50 and zero, supporting this bearish view. This suggests that the bearish momentum will continue, which may reduce the value of the frog-themed meme currency
If the cryptocurrency market outlook is bearish, PEPE may fall below $0.0000903 and fall 35% to re-enter the low of $0.0000592 on May 1
On-chain data also predicts a drop in PEPE prices. IntoTheBlock’s Inflow/Outflow Map (IOMAP) shows 3,040 addresses bought 24.60 trillion PEPE tokens at $0.0000110. If the price rises to this level, many investors may sell to break even
Technical analysis shows that the $0.0000110 resistance level matches the IOMAP results, making it a key reversal point
Continuing the slump in May, PEPE’s daily active addresses decreased by 24% in the previous week. This decrease indicates that PEPE’s network is losing demand, which may cause the frog-themed meme currency to collapse.
PEPE’s daily candle price closed above the June 16 high of $0.0000125, suggesting a market breakout. This would break the bearish thesis and could trigger a 22% rally to $0.0000152 USD, down from daily high on June 6
