Pepe cryptocurrency is experiencing significant bearish momentum, evidenced by a drop below the critical support level of $0.00000766. This movement has pushed the price to $0.000007425, a 3.51% decline over the past 24 hours. The breach of this key threshold has raised concerns about a potential extended downward movement, with the next target support level at $0.00000589.
The market’s response to this trend is notable, with PEPE’s market capitalization decreasing by 3.62% to just over $3 billion, while trading volume has marginally decreased by 0.26% to around $652 million. These metrics reflect the growing apprehension within the market and underscore the prevailing bearish sentiment. The Relative Strength Index (RSI) on the daily chart provides further insights into market dynamics. Currently, the RSI stands around 37, significantly below the neutral 50 mark.
From an investment perspective, the recent price decline has led to a significant portion of the supply turning into loss-bearing assets. The Global In/Out of the Money (GIOM) indicator reveals that approximately 123 trillion PEPE, valued at close to $880 million, has transitioned out of profitability in the recent downturn. This highlights the financial impact on investors who purchased PEPE between $0.00000900 and $0.00001000.
Pepe Technical Analysis: Bearish Trends and Potential Recovery Paths
Pepe (PEPE) has continued to exhibit a bearish pattern as it remains below its 100-day Simple Moving Average (SMA) in a four-hour time frame. This trend is also confirmed by the inability to exceed the barrier at $0.00000766 which moved from strong support area to strong resistance zone levels. The depicted stability below this mark indicates a lack of bullish momentum, suggesting that the downward trend is likely to persist.
Also, Macd reflects bears taking over whereby the signal line is above the Macd line for a bearish crossover, thereby endorsing continuously falling prices. As such, this technical setup puts PEPE in a possible bear market and traders are thus advised to wait for further confirmation that bears are still in control if there is any sustained movement below this SMA level.
Looking ahead, PEPE has immediate downside risks with initial support at $0.00000589 possibly followed by a break below which could see the price moving lower to around $0.00000566. This would imply a continuation of the ongoing bearish trend as more selling pressure and the general market sentiment remain weak. On the other hand, if PEPE stabilizes and rebounds from the $0.00000589 support zone then it could still retrace back towards its peak at $0.00001152.
Such an occurrence can only happen when there is a major shift in market dynamics probably caused by an overall recovery or positive fundamental news specifically about the PEPE coin. Conversely, breaking above the level of $0.00001152 would divert attention from the current bearish narrative hence pushing up prices higher towards resistance area zones situated around $0.00001313 showing substantial reversal in existing downtrend lines.
