PEPE Price Drop Incoming? Key Level to Watch!
Key Takeaways
- PEPE has formed a head-and-shoulders pattern on the daily chart.
- A potential 22% drop is possible if PEPE doesn't reclaim the $0.000013 resistance.
Pepe [PEPE], the popular memecoin, is showing signs of a bearish reversal, potentially leading to a significant price decrease.
PEPE's Price at Critical Juncture
The broader cryptocurrency market's sideways or downward trend has impacted PEPE, causing it to drop over 7.5% in the last 24 hours and approach the neckline level near $0.000012.
During this period, trading volume increased by 4.5%, indicating heightened market activity that may involve hedging or dip-buying strategies.
Source: TradingView
Technical analysis indicates a short-term uptrend followed by a 20% weekly drop, suggesting a likely reversal for PEPE.
The memecoin appears to have broken down from a head-and-shoulders pattern on the daily chart and is currently retesting the neckline around $0.00001220.
Failure to reclaim this level could result in a 22% decline towards $0.000009.
However, a daily candle close above $0.000013 would invalidate the bearish structure, signaling strong buyer interest.
Currently, the Chaikin Money Flow (CMF) stands at 0.02, suggesting mild accumulation, insufficient to trigger a bullish reversal.
Expert Insights on PEPE
Crypto analyst VegetaCrypto1 suggested on X that PEPE might experience a sweep before a potential recovery, indicating a possible fakeout and bounce scenario.
Source: X
Bearish Signals from On-Chain Data
Recent investor behavior reinforces the bearish perspective.
CoinGlass data shows net PEPE inflows of $1.92 million into exchanges over the last 24 hours, signaling potential selling pressure.
Source: CoinGlass
Derivatives data reveals a short bias, with $10.85 million in short positions at $0.00001248, nearly double the $5.92 million in long positions at $0.00001152.
These inflows and leveraged bets indicate expectations of further downside in the near future.
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